Down $1 trillion, world's worst stocks near make-or-break level

Large-cap banks and oil companies, rumored to be the favored buying targets of state-run funds, were the biggest contributors to the rally

In a Chinese stock market infatuated with round numbers, 3,000 has emerged as the latest fixation for investors trying to gauge the government’s commitment to ending a nearly $1 trillion selloff.

That’s the next big line in the sand for the Shanghai Composite Index, whose 13 percent slump since Jan. 24 has been the steepest worldwide. The benchmark equity gauge came within 1.4 percent of the 3,000 threshold on Wednesday, before rallying in the afternoon amid speculation state-run funds had stepped in to support the market.

The big question for investors is whether China’s so-called National Team is committed to