Chinese market rout close to ending
The rout in Chinese stocks is close to ending and the nation's financial markets are expected to become more stable, according to the head of the country's central bank.
State intervention in the equity market prevented systemic risk and stopped the free-fall in shares, People's Bank of China Governor Zhou Xiaochuan said. The yuan's exchange rate versus the dollar is also close to stabilising, he said, after a meeting by finance ministers and central bankers from the Group of 20 nations in Ankara.
The Shanghai Composite Index tumbled 39pc since reaching a seven-year high on June 12, helping to erase $5 trillion in value on mainland bourses, as traders cut leveraged bets.
Margin loans tracked by Chinese exchanges have fallen by more than half from their peak to about 1 trillion yuan. The shock devaluation of the yuan in August rattled world markets and sparked exchange-rate declines in emerging economies.