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China Stock Turmoil 2015
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On Monday, the Shanghai Composite Index posted its biggest single-day rise in four months.Photo: Xinhua

Newspaper source who gave boost to Chinese stocks is 'top leader'

People's Daily's exclusive interview with an 'authoritative insider' who discussed importance of investment helped send markets rocketing

An article on the website of the overseas edition on Wednesday hinted that an "authoritative insider" who was quoted by the paper's domestic edition in a story that helped send Chinese stock markets rocketing this week was a top national leader.

The on Monday published an article headlined "Five most pressing questions on the Chinese economy - an exclusive interview with an authoritative insider", stressing that investment had an important role in bolstering growth and reviving investment. The article also appeared in its English edition.

On the same day, the National Development and Reform Commission (NDRC) rolled out a 1.97 trillion yuan (HK$2.5 trillion) investment plan by inviting private investors to help fund, build and operate 1,043 public-private partnership projects ranging from highways to tunnels.

In the article, the insider said investment had a vital effect on growth. "Seen from the stage China is at right now, whether it can transfer savings to effective investment will be the key to stable economic growth," he said.

More financing channels should be explored to exploit the potential of private capital and transfer more savings into investment, he was quoted as saying.

The paper, which in recent months has run a string of articles to inform the public about the stock markets and the nation's economic outlook, is seen by investors as an important window on Beijing's thinking on policy.

On Monday, the Shanghai Composite Index posted its biggest single-day rise in four months, led by infrastructure and transport shares. It was up by 3.35 per cent to close at 4,813.80.

On Wednesday, the article from the overseas edition's website written under the pen name Xiakedao, asked: "Who is the authoritative insider in the ?"

The article said the term "authoritative insider" had been "hot" in recent days because the had carried an interview with such a source talking about the economy.

"The stocks posted strong gains during the past two days and everyone was happy," it said. "Xiakedao doesn't know why, even if he knows he wouldn't tell you, but we could discuss who this authoritative insider is - it's a figure we're familiar with."

The article said in the past, essays authored by Mao Zedong were often published anonymously under the byline: "authoritative insider".

"Even if they were not penned by Mao Zedong himself, they manifested the intention, character and style of China's top decision-making level," it said.

"Because of their mysterious nature, articles [of this kind] are all the more attractive," it said.

Cheng Yizhong, a former chief editor of the , said "shrouding things in mystery" was a propaganda strategy of the Communist Party.

This article appeared in the South China Morning Post print edition as: Source who gave boost to stocks is 'top leader'
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