Slump Persists, China Fails to Stimulate Markets Hobbled by Pledged Shares

Slump Persists, China Fails to Stimulate Markets Hobbled by Pledged Shares
An investor sits in front of displays showing stock information at a brokerage office in Beijing on Oct. 11, 2018. Thomas Peter/Reuters
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SHANGHAI —China is struggling to restore confidence in its stock markets, which are being weighed down by a massive amount of shares that have been pledged as collateral as credit-starved companies seek to raise funds.

Analysts say the practice, which involves 10 percent of total outstanding shares, is a minefield for an economy already battling slowing growth and a trade war with the United States.