China Stocks Rebound on Government Support
Chinese stocks rebounded on Thursday, with the Shanghai Composite rising 1.4% to around 3,260 and the Shenzhen Component gaining 0.6% to 10,290, recovering losses from earlier in the week as Beijing intensified support for the struggling stock market.
On Wednesday, China unveiled a new plan led by top financial regulators, urging state-owned insurance companies to increase their investments in Chinese A-shares and equity funds, while also encouraging mutual funds to raise more capital for stock investments. Wu Qing, head of the CSRC, stated that the plan would inject hundreds of billions of yuan in new capital annually.
Earlier in the week, Chinese stocks faced pressure following US President Donald Trump’s comments about a potential 10% tariff on Chinese imports, set to take effect as early as February 1. Notable gainers included East Money (+3%), Hithink Royalflush (+4.7%), Foxconn Industrial (+2.1%), Shenzhen Woer (+3.9%), and Shanghai Electric Group (+10%).
Source : Trading Economics