Chinese Stocks Rally on Support from Sovereign Wealth Fund and Regulators
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Chinese stocks staged their biggest rally in years on Tuesday after the country's sovereign wealth fund said it would increase share purchases
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The Shanghai Composite jumped 3.2% and the Shenzhen Component Index rose 6.2% for their best single-day gains since 2015 and 2022 respectively
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The rebound came after Beijing stepped up efforts to prop up the stock market, which has lost $6.1 trillion in value since 2021
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China's securities regulator said it will encourage more institutional investors to enter the market following the wealth fund's commitment
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The rally provides short-term relief but does not address China’s underlying economic challenges like weak demand and the property crisis