China’s state media moves to reassure rattled investors after rout wiped US$574 billion off stock market

[The_King]

China’s state media are on a mission to talk up the battered stock market and reassure rattled investors after a rout on Monday that erased more than US$570 billion from Chinese stocks listed at home and abroad.The panic sell-off provides an opportunity to “buy on dips” – meaning to invest in stocks that have plummeted in price – as there are no fundamental changes in the onshore market, according to an article published by the Securities Times, which is run by Communist Party mouthpiece the People’s Daily.

 

The Shanghai Securities News, which is owned by the official Xinhua News Agency, ran an article saying there is no systemic risk and that stock valuations are expected to rebound. The Securities Daily cited analysts as saying the turbulence was simply a result of funds rotating in and out of sectors, and reassured readers that the big picture of the economy and liquidity remained intact.

 

Their campaign of reassurance aimed to calm the frayed nerves of the nation’s 189 million stock traders that were caught off guard by Monday’s rout. Concerns have been mounting among investors that Beijing will target more industries after the crackdown against the technology and after-school tutoring sectors, which top policymakers deem to have exerted too much influence on the economy. Overseas investors sold domestic Chinese stocks at the fastest pace in a year on Monday.

 

 

The soothing gesture failed to curb selling on Tuesday. The Shanghai Composite Index tumbled by 2.5 per cent at the close, breaching its 200-day moving average that marks a dividing line between the bull and bear markets, after a 2.3 per cent decline a day earlier. Hong Kong’s benchmark Hang Seng Index sank 4.2 per cent, extending a 4.1 per cent slump on Monday.

 

Beijing has begun to pay more heed to the quality of growth after successfully leading the economy out of a recession caused by the pandemic. On top of the clampdown on the technology  and the private education industries, China has also tightened its oversight of the overheated property market, with Shanghai announcing an increase in mortgage rates for the first time in years last week.

 

“The market expectations are that some segments of the consumer industry, such as medical beauty, will also be in for more regulation that will lead to a change of industry fundamentals,” said Min Liangchao, a strategist at HSBC Jintrust Fund Management in Shanghai. “Besides, the ongoing China-US talks in Tianjin have signalled uncertainty in the relations between the two countries.”

 

State intervention in the stock market is not rare in China, but the results often backfire. The government bought at least 1 trillion yuan (US$154 billion) of stocks in an attempt to arrest the declines in the 2015 market meltdown that wiped out US$5 trillion, only to see share prices fall further. At the height of the trade war with the US in 2018, vice-premier Liu He made a rare call to shore up the market by saying that China’s stocks were attractive investments. Still, the Shanghai Composite fell to a four-year low two months after his comment.

 

[socrates469bc]

only kgks will believe CPC propaganda.

 

the other day 2 mths ago my banker asked me if i want to buy this tech-focused fund with some china components, i told him super overvalued and with Emperor Xi doing so many rubbish policies, i wait for it to be cheaper first.

 

heng, i trust my instinct.

 

wahahahahahahahaha

[aaur4man]

1 minute ago, socrates469bc said:

only kgks will believe CPC propaganda.

 

the other day 2 mths ago my banker asked me if i want to buy this tech-focused fund with some china components, i told him super overvalued and with Emperor Xi doing so many rubbish policies, i wait for it to be cheaper first.

 

heng, i trust my instinct.

 

wahahahahahahahaha

 

10c, Baba all this u won't touch?

[socrates469bc]

not at this price.

 

u look at how meituan collapse these past 2 days know the show not over yet.

 

and a fund manager advised me to buy in tiong tech last saturday.

 

nb, he really think i bo read news.

 

wahahahahahaha

[aaur4man]

2 minutes ago, socrates469bc said:

not at this price.

 

u look at how meituan collapse these past 2 days know the show not over yet.

 

and a fund manager advised me to buy in tiong tech last saturday.

 

nb, he really think i bo read news.

 

wahahahahahaha

 

I think he never read news la

[socrates469bc]

1 minute ago, aaur4man said:

 

I think he never read news la

 

cannot blame, kgks many many.

 

this kgk the best, didnt even read financial reports and then spent laopeh's sgd1.9bln to buy bankrupt tiong company.

 

come to think abt it, i think our kgk xdd @HarrisY smarter.

 

at least he is not a pai kar kia.

 

[The_King]

5 hours ago, socrates469bc said:

only kgks will believe CPC propaganda.

 

the other day 2 mths ago my banker asked me if i want to buy this tech-focused fund with some china components, i told him super overvalued and with Emperor Xi doing so many rubbish policies, i wait for it to be cheaper first.

 

heng, i trust my instinct.

 

wahahahahahahahaha

Ask them to borrow from bank. Then buy it.  Use all his wealth to prove it

Edited July 28, 2021 by The_King

[socrates469bc]

1 hour ago, The_King said:

Ask them to borrow from bank. Then buy it.  Use all his wealth to prove it

 

the family does have a listed finance arm.

 

i waiting for sakti sherman to take over from his laopeh so that MAS can nationalized it.