Stock market intervention by Beijing 'could help narrow income gap': Communist Party newspaper
Beijing's intervention to calm the shaky stock market was necessary and could help narrow the income gap, a commentary in a Communist Party newspaper said on Sunday.
The article, published in , run by the party's propaganda department, said the intervention, combined with other government measures, was "necessary" to keep household income levels buoyant.
"The intervention can prevent a financial crisis as a result of mounting vulnerabilities in the market and prevent people from losing confidence in financial authorities," it said.
The stock rout, which began in mid-June, prompted Beijing to launch a slew of measures to restore sentiment, including asking companies to buy their own shares, encouraging executives to do the same and suspending initial public offerings.
Some global fund managers said Beijing's measures to shore up the markets would put off foreign investors as the intervention underscored the lack of maturity and liquidity in the mainland capital market.