Sources close to the matter told Bloomberg that Beijing authorities are stepping in with state funds to protect the stock market during the two sessions (the National People’s Congress and the National Committee of the Chinese People’s Political Consultative Conference) to ensure market stability. Bloomberg said, but for now it looks like China’s stock market rout is showing no signs of slowing down.
The CSI 300 index hit its deepest decline since July last year on Monday (8), losing ground on its 100-day average. This morning (9), the index continued its shocking decline, falling between 3.2% and 1.2%. At noon Taipei Time, the CSI 300 index was close to flat.
A Hong Kong dealer told Bloomberg that clients associated with Chinese government funds were very aggressive today in buying stocks through the Shanghai-Hong Kong/Shenzhen-Hong Kong Stock Connect. Some star stocks that previously led the Chinese stock market have fallen hard recently, such as Guizhou Maotai, which has fallen 25 percent from last month’s high and seen its market value evaporate by $130 billion.
Offshore investors bought more than $383 million of Chinese stocks via Hong Kong at around 10:45 a.m. HKT.
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