China's benchmark CSI300 Index staged a moderate rebound from 4-1/2-year lows this week, after state fund Central Huijin Investment started buying exchange-traded funds on Monday, adding substance to the central bank's pledge over the weekend to fend off financial risks.
The policy efforts could also halt capital outflows and ease the yuan's depreciation and a stronger market could help fund a rejuvenation of the world's second-largest economy. Still, the rebound in China stocks was modest and trading remained thin, underlining Beijing's challenge in reviving confidence dented by a stop-go economic recovery, a deepening property crisis, and heightened geopolitical tensions.
This weekend the government gave a clear sign of market support when People's Bank of China Governor Pan Gongsheng said China would prevent risk contagion in the stock, bond and foreign exchange markets, and ensure stability. Enlisting Huijin underscored the Chinese government's seriousness about propping up the market after earlier piecemeal measures such as a cut in the stamp duty, reductions in trading fees, short-selling restrictions and curbs on share sales by listed companies' large shareholders.
Huijin last bought ETFs during the 2015 stock market crash, and during the money market liquidity crunch in 2013."The Shanghai stock indices were higher by more than 20 per cent in three months both times", analysts at Singapore's United Overseas Bank wrote.
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »