Violent Government Buying Spree Sends Chinese Stocks Soaring At Close Of Trading; Yellen On Deck

By Tyler Durden of Zero Hedge

China is slowly learning.

On a day when market participants will care about only one thing – how hawkish (or dovish) the FOMC sounds at 2:00 pm (no Yellen press conference today) – Chinese stocks provided the usual dramatic sideshow and traded unchanged or modestly negative for most of the day despite the latest $100 billion injection, the close of trading on Wednesday was a mirror image of what happened in the last hour on Monday, as various Chinese “plunge-protection” mechanism went into a furious buying frenzy and government-backed funds rushed to buy anything that trades in the last 60 minutes of trading in what may be the most glaring example of banging the close yet, something which the Fed and Citadel have shown is the most efficient way of “setting” market expectations and getting the most bang for your manipulating buck.

As a reminder, “banging the close” is illegal if it sends the price lower. When it pushes prices higher, it is perfectly accetable.

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