Index Investing News
Sunday, May 25, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

China President Xi Jinping to be briefed on plans to stop $7 trillion stock rout

by Index Investing News
February 6, 2024
in Financial
Reading Time: 3 mins read
A A
0
Home Financial
Share on FacebookShare on Twitter

Anticipation is mounting for more forceful Chinese government efforts to end the nation’s stock rout, with regulators planning to brief President Xi Jinping on the market as soon as Tuesday. 

Chinese stocks extended their rebound after Bloomberg reported regulators led by the China Securities Regulatory Commission plan to update the top leadership on market conditions and the latest policy initiatives as soon as Tuesday, according to people with knowledge of the matter. The CSI 300 benchmark closed 3.5% higher in its best day since late 2022. Small-cap equities that have so far borne the brunt of the rout also jumped, with the CSI 1000 gauge up 7%, the most since 2008.

While it’s unclear whether any new support measures will come out of the meeting, traders are hoping that this time will be different. Some $7 trillion of value has been wiped off Hong Kong and China equities since their peaks in 2021 and piecemeal approaches to support the economy and stabilize markets have so far failed to lift sentiment. For policymakers, it’s important to stabilize the stock market to avoid further hurting consumer confidence as China enters the weeklong Lunar New Year holiday. Play Video

“The news that the nation’s number one is holding a meeting is an encouraging development as it shows that the plunge is getting close to punching through the authorities’ comfort level,” said Li Weiqing, fund manager at JH Investment Management Co. “It gives me the impression that they are doing everything they can, apart from calling out to the market—now is the time to buy.”

The news about the Xi meeting followed a flurry of supportive announcements earlier in the day, including a vow by Central Huijin Investment Ltd., the unit that holds Chinese government stakes in big financial institutions, to buy more exchange-traded funds. Every effort will be made to maintain stable market operations, the securities watchdog said in a follow-up comment.   

Foreign inflows surged as overseas funds added more than 12 billion yuan ($1.7 billion) of mainland shares on Tuesday, the most this year.

One danger for buyers is that the outcome of the meeting fails to impress, triggering a renewed selloff. The battered market has seen multiple false dawns over the past year, with stimulus-fueled rebounds barely lasting more than a few days as poor economic data and new policy risks soon sapped sentiment. 

The equity crash in 2015 suggests any rescue attempt may not turn around the market immediately. Authorities curbed speculative trading, targeted market manipulation and guided some investors to avoid stock sales back then. Yet stocks took months to eventually bottom out, and peaked at a much lower level than the 2015 high.

“Our view has been that state support can indeed lead to a tactical rebound but we are not sure if that can be enough for a sustained rally,” said Rajat Agarwal, Asia equity strategist at Societe Generale SA. “Even if we see 2015, the buying started in the summer but the rebound didn’t last and the market only bottomed out in early 2016.”

As the slump extends, Xi has shown signs of becoming increasingly involved in the nation’s financial and economy policies, including making an unprecedented visit to the central bank late last year. 

Authorities have been working around the clock over the past few months to come up with market rescue measures, the people said. The securities regulator has worked weekends and the National Financial Regulatory Administration has called at least a dozen meetings over the past two months on stabilizing capital markets.

The CSRC and NFRA didn’t immediately respond to Bloomberg requests for comment.

Officials this week tightened trading restrictions, banning some quantitative hedge funds from placing sell orders and others from cutting stock positions in their leveraged market-neutral funds, in an effort to stem losses. The securities regulator also said Monday it will guide brokerages to adjust their margin call levels and maintain “flexible” liquidation lines to limit forced selling.  

Earlier efforts have included curbs on short selling as well as state buying of shares in the nation’s largest banks. The measures have shown little success in restoring investor confidence, which has been hurt in recent years by an economic slowdown as well as Xi’s growing control over private enterprise and sweeping crackdowns. 

Even with this week’s rebound, equity benchmarks are still among this year’s worst performers among more than 90 global gauges tracked by Bloomberg. The CSI 300 tumbled to a five-year low on Friday and was still down more than 40% from a peak in 2021.

“The fact that a special meeting may have been called could indicate that things have become so bad that it needs to be reported to the top,” said Xu Dawei, fund manager at Jintong Private Fund Management in Beijing. “If there were to be a report from the state media on this, I would say with confidence that this is the pivot point, as concerted actions are also now seen.” 



Source link

Tags: briefedChinaJinpingPlansPresidentRoutStockStoptrillion
ShareTweetShareShare
Previous Post

Is Wolfspeed Stock the Best Investment for EV Chips?

Next Post

Pro-XRP Lawyer Decodes Ripple’s New Battlefront With SEC

Related Posts

Junk bonds: CCC vs B unfold provides a warning signal for debt

Junk bonds: CCC vs B unfold provides a warning signal for debt

by Index Investing News
May 25, 2025
0

© 2025 Fortune Media IP Restricted. All Rights Reserved. Use of this web site constitutes acceptance of our Phrases of...

COVID-19 Information: Most instances in TN, Kerala, Karnataka, Maharashtra delicate, underneath house care, say sources

COVID-19 Information: Most instances in TN, Kerala, Karnataka, Maharashtra delicate, underneath house care, say sources

by Index Investing News
May 25, 2025
0

After the detection of COVID-19 instances in few southern and western states, the Union Well being Secretary was realized to...

Musk Vows to be ‘Tremendous Centered’ on Corporations Amid X Outages

Musk Vows to be ‘Tremendous Centered’ on Corporations Amid X Outages

by Index Investing News
May 24, 2025
0

Billionaire Elon Musk stated he must be “tremendous targeted” on his corporations, pointing to points at X as proof of...

Dow Jones, S&P 500, Nasdaq Composite: Bond tantrums put Trump on discover, once more

Dow Jones, S&P 500, Nasdaq Composite: Bond tantrums put Trump on discover, once more

by Index Investing News
May 24, 2025
0

US President Donald Trump | Picture Credit score: Eduardo Munoz Was US President Donald Trump’s U-turn to escalate the commerce...

Reasonably bullish exercise in AMC Leisure with shares down 0.46%

Reasonably bullish exercise in AMC Leisure with shares down 0.46%

by Index Investing News
May 24, 2025
0

Reasonably bullish exercise in AMC Leisure (AMC), with shares down 2c close to $3.23.Choices quantity almost triple the day by...

Next Post
Pro-XRP Lawyer Decodes Ripple’s New Battlefront With SEC

Pro-XRP Lawyer Decodes Ripple's New Battlefront With SEC

UBS beats earnings expectations, announces up to  billion share buyback

UBS beats earnings expectations, announces up to $1 billion share buyback

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Oracle (ORCL) reports Q1 results: Here’s what you need to know

Oracle (ORCL) reports Q1 results: Here’s what you need to know

September 11, 2023
Shiseido Company, Limited 2022 Q4 – Results – Earnings Call Presentation (OTCMKTS:SSDOY)

Shiseido Company, Limited 2022 Q4 – Results – Earnings Call Presentation (OTCMKTS:SSDOY)

February 11, 2023
Russian cyberattacks are on the rise—we simply don’t learn about it

Russian cyberattacks are on the rise—we simply don’t learn about it

July 15, 2022
First fishing trip inspires perseverance over life’s obstacles

First fishing trip inspires perseverance over life’s obstacles

July 19, 2023
Make investments In Franchises With Simply 0

Make investments In Franchises With Simply $500

August 25, 2022
Mortgage Charges Fall Quick as Tariffs Set off Mass Inventory Selloff, Economic system at Danger

Mortgage Charges Fall Quick as Tariffs Set off Mass Inventory Selloff, Economic system at Danger

April 8, 2025
Carl Icahn’s firm cuts dividend in half after short-seller attack, shares slump By Reuters

Carl Icahn’s firm cuts dividend in half after short-seller attack, shares slump By Reuters

August 4, 2023
Keke Palmer Displays on Relationship with Older Man Whereas Starring on Nickelodeon As a Teen

Keke Palmer Displays on Relationship with Older Man Whereas Starring on Nickelodeon As a Teen

November 1, 2024
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In