China has spent around Rmb860-900bn to support the stock market

From Goldman Sachs China musings:

How much has the government bought in the market? 

The Chinese government's recent measures to support the domestic equity market through the so-called 'national team' institution are being frequently discussed by investors and in the media. In this commentary, we estimate the amount of money the 'national team' has spent to support the market, the remaining capital left available for use, the sectors that have likely benefited from government support, the potential overhang on the equity market from government support measures, and our views on the equity market over coming months.

We estimate the 'national team' has spent around Rmb860-900bn to support the domestic equity market.

US Administration Officials Condemn Senate China Currency Bills

WASHINGTON -(Dow Jones)- A trio of Bush administration officials Tuesday condemned Senate legislation aimed at pressuring China to change its currency regime, saying the bills amounted to the "wrong approach."

In a letter signed by U.S. Treasury Secretary Henry Paulson, Commerce Secretary Carlos Gutierrez and U.S. Trade Representative Susan Schwab, the officials said two Senate measures "would substantially weaken the position of the United States in our ongoing efforts to achieve essential economic reforms in China and around the world, while jeopardizing our rapidly growing exports that have benefited American workers and farmers."

Last week, the U.S. Senate Finance Committee approved a bill that would open the way for punishing China over monetary policy.

article::: FXStreet

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