Since the introduction of interest rate cut and the cut on the deposit reserve ratio by the People"s Bank of China, the Chinese government has since taken a serial of measures to save the stock market. Chen Gong, Anbound’s chief researcher is of the view that the target of 4,500 points is the protection line put up by the Chinese authorities as they are unclear, uncertain and unable to take control of the total size of the fund. The real motive of putting up the protection line in rescuing the stock market is to ensure that the fund belong to the bank is safe. This could be the key reason as to why the authorities have been extremely aggressive in rescuing the stock market.
