Stocks surge as rescue efforts intensify 3.2%
CHINA’S securities regulator yesterday said it will firmly support Central Huijin Investment Ltd (Central Huijin) to intensify its efforts to increase holdings and expand the holdings scale in stock market.
“We will create more convenient conditions and more smooth channels for its market operation,” said the China Securities Regulatory Commission.
At present, the valuation level of the A-share market is at a historically low level, and the medium and long-term investment value has been highlighted, which has been fully recognized by investment institutions, including Central Huijin, according to the CSRC spokesperson.
The CSRC said it will continue to coordinate and guide various institutional investors, such as public funds, private funds, securities companies, social security funds, insurance
The Shanghai Composite jumped 3.2 percent yesterday, its biggest daily gain since March 2022. institutions and annuity funds, to enter the market more vigorously. It will also encourage and support listed companies to increase the intensity of repurchase and holdings, introduce more incremental funds into the A-share market, and spare no effort to safeguard the stable operation of the market.
Central Huijin, a state-owned investment company, said yesterday it fully recognizes the current market allocation value of A shares, and has increased its investment scope of exchange-traded fund.
Chinese stocks rallied yesterday after authorities pledged to boost their investment.
The Shanghai Composite jumped 3.2 percent, its biggest daily gain since March 2022. Trade volume was the highest since May last year.
The blue-chip CSI 300 climbed 3.5 percent for its largest one-day rise since November 2022, and the small cap index notched its biggest rise since 2008.
Most of the surge happened when traders returned from markets’ midday break having digested a volley of helpful headlines.
Foreigners’ net buying at 12.6 billion yuan (US$1.75 billion) was the largest one-day rush of the year yet.
In Hong Kong, the Hang Seng rose 4 percent for its biggest gain in six months and beaten-down market darlings led the way, with the Hang Seng tech index up 6.8 percent in its biggest rise in more than a year.
Online giants and Alibaba and JD.com were among the top performers with gains larger than 7.5 percent. Developer Longfor rose 10 percent as did Country Garden’s property services division.
On the mainland, healthcare shares up 8 percent, artificial intelligence shares, up 7.4 percent, and new energy shares, up 6.3 percent, were large gainers.
Even previously freefalling small caps rose 7 percent.
The yuan was also on the rise, lifting from Monday’s three-week low to 7.1865 per dollar.
US-listed shares of e-commerce firms Alibaba, JD.com and PDD Holdings rose between 4.4 percent and 5.6 percent in premarket trading.
(Agencies)