China intervenes as stock rout reaches US$5 trillion amid ‘uber-weak’ confidence, regulator heightens scrutiny reminiscent of 2015 crash
- President Xi Jinping is set to receive a briefing from China’s regulators about the state of the financial markets, Bloomberg reported, citing unidentified people
- Central Huijin Investment, a strategic investor in top Chinese lenders, said it has been buying exchange-traded funds to help stabilise the market
The funds, often dubbed the “National Team,” have bought 70 billion yuan (US$9.8 billion) worth of local shares over the past month, according to an estimate by Goldman Sachs. State-owned companies and the central bank are among the likely players, the Wall Street bank said, while the sovereign wealth fund has separately confirmed its action.
President Xi Jinping is set to receive a briefing from China’s regulators about the state of the financial markets, Bloomberg reported, citing people it did not identify. The briefing, if it takes place, underscores the “urgency in Beijing to prop up the plunging stocks,” it said. The report has not been confirmed or denied.
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Hong Kong stock market falls below 15,000 level, its lowest in 15 months
China’s CSI 300 Index, which tracks 300 of the biggest companies on the Shanghai and Shenzhen bourses, added to an earlier rally and closed on Tuesday with a 3.5 per cent gain. The Hang Seng China Enterprises Index, which tracks 50 major mainland companies, surged 4.9 per cent, the most since March 2023.
The CSI 300 gauge had slumped 38 per cent since January 2021 after the economy faltered, hitting a five-year low in trading earlier this week, with heightened regulatory scrutiny reviving memories of the US$5 trillion crash in 2015.