China’s stock market rebounded from a 15-month low after a call for support from state media

China's stock market rebounded from a 15-month low after a call for support from state media

In an editorial, the state-backed Securities Daily stated, “The recent dismal performance in the A-share market is an overreaction to negative news.” Concerns over tighter Fed policies, geopolitical tensions in Europe, and market uncertainty ahead of the upcoming Chinese New Year holidays drove China’s blue chips to a 15-month low on Tuesday.

After state media urged financial institutions and pension funds to help stabilise markets, China’s equities finished higher on Wednesday, with blue chips rebounding from a 15-month low recorded the previous day. The Shanghai Composite Index increased 0.7 percent to 3,455.67, while the blue-chip CSI300 index advanced 0.7 percent to 4,712.31.

The Daily added that financial institutions such as securities firms, fund houses and social security funds should take the responsibility to maintain the stable and sustainable development of China’s capital markets. The consumer staples sector gained 1.1%, the brokerage index rose 1.8%, while the machinery sub-index jumped 2.2%.

New energy shares climbed 2%, with the wind power industry up nearly 4%. President Xi Jinping said China’s ambitious low-carbon goals should not come at the expense of energy and food security or the “normal life” of ordinary people. However, the healthcare sub-index lost 1.9%, as local media 21st Century Business Herald reported that a seventh round of centralised pharmaceutical procurement has been launched, part of a push to lower medical costs for patients.

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