China’s shares surged Friday amid suspected government buying, but the week’s volatile trading still puts the index down nearly 8% in that time. In one wild week, China became the epicenter of a global selloff, with a five-session crash starting last Thursday triggering steep losses in U.S. and European stocks — only to be followed by surges. To quiet worries about its slowing growth, Beijing took several easing measures this week to get its economy back in gear, including an interest-rate cut and liquidity injections. The move follows a decision earlier this month to devalue the yuan, which could make exports more competitive, as China struggles to meet its growth target of about 7% for the year. Beijing’s efforts — and robust U.S. growth data — steadied markets in the region and overseas by the end of the week, and arrested a slide that took Shanghai stocks down as much as 43% from their June peak. But concerns linger about the sustainability of China’s recovery, authorities’ role in the market and the timing of a rise in U.S. interest rates, which could sap funds from the region as investors seek higher-yielding assets elsewhere. The Shanghai Composite Index SHCOMP, +4.82% suffered its second-straight week of losses and its third month of declines after a yearlong rally took the index to seven-plus year highs. A recovery took hold by Thursday, when suspected government intervention drove the Shanghai Composite up more than 5%. Read: Beijing, ‘Loch Ness monster’ eyed in China’s mysterious rally The momentum extended into Friday, when it gained another 4.8% to 3,232.35. Some even suspected that officials wanted to give investors something to cheer ahead of a parade commemorating the 70th anniversary of World War II next week. China’s markets will be closed on Sept. 3 and 4 for a national holiday. “If the ‘National Team’ has returned to the stock market, it does seem poorly timed,� wrote Angus Nicholson, an analyst at IG, referring to the team of government agencies, state-backed companies and stockbrokers that ostensibly steps in to fix the market. “Earlier action could have halted the record losses seen since last week, but any action now would upset the market finding its own natural bottom, which would be far healthier for the index in the long term. Market intervention seems to be an itch that is difficult not to scratch.� Shares elsewhere in the region rose for the second straight day, too, with Hong Kong’s Hang Seng Index HSI, -1.04% up 0.6%, the Nikkei Stock Average NIK, +3.03% gaining 3%, and South Korea’s Kospi SEU, +1.56% rising 1.6%. A strong reading of U.S. gross domestic production, which expanded 3.7% in the second quarter, up from an initial estimate of 2.3% growth, renewed optimism that the world’s biggest economy could anchor global growth. Read: China’s economy may be in worse shape than people think Currencies in Asia also strengthened after hitting multiyear lows earlier in the week. In China, government funds first tasked to support the market during an earlier summer rout have continued to play a major role. Late afternoon Thursday, analysts said Beijing was once again buying stocks to support the market, after what they described as a hiatus to let market forces determine stock prices.

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