China Won't Be Propping Up Its Market With Big Stock Buys: Report

China's government has decided it will no longer make big stock purchases to support its stock market, and instead plans to go after those it believes are responsible for causing recent volatility, The Financial Times reported on Monday. The collapse in equities last week was partially blamed on a lack of support by authorities who have been intervening since early July. Around $200 billion has been spent on the market by a "national team" of state-owned investment funds and institutions over the past two months. Reports said officials intervened last Thursday as they wanted to provide a positive stock picture ahead of a military parade marking the 70th anniversary of the end of World War II. However, senior regulatory officials said this was a one-off, according to the FT, and authorities will now focus on punishing individuals. Chinese officials over the weekend punished nearly 200 people for spreading online rumors in connection with major news events, such as the stock-market turmoil.

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