Shanghai Index Rebounds to End Up 1%
SHANGHAI -- Beijing's apparent failure to boost its sagging stock market means it might turn to more-drastic measures to lift share prices before the Summer Olympics, analysts say.</br></br>In the second trading session since regulators moved to cool investor concerns by limiting big share sales, the benchmark Shanghai Composite Index rose 1% to end Tuesday at 3147.79.</br></br>The index is still down 40% since the beginning of the year and has declined 49% since its mid-October record of 6124.04.</br></br>The index fell below the 3000 mark Tuesday -- the first time since March 20, 2007 -- before recovering to positive territory by the close.</br></br>If a stronger recovery continues to prove elusive, officials may decide to take more measures, like cutting a tax on stock transactions, analysts say. But the government might be gambling by doing so, as it attempts to straddle a line between stabilizing the markets and adding unneeded fuel to the economy and inflation.