China’s A-share market reopens on Monday, its first trading day of the Year of the Rat, losing heavily across the board. Photo: CNS Photo

 

Chinese shares bounced back Tuesday morning after suffering a hefty loss the previous day, as panic receded a day after a deranged selloff, amid government efforts at replenishing liquidity that bolstered market confidence. 

The two mainland markets opened lower but quickly flashed green. By the end of the morning session, the Shanghai Composite Index rose by 0.21 percent to 2,752.44 points, while the Shenzhen market rose by 1.74 percent to 9,949.94  points. The tech-heavy Nasdaq board soared by 3.69 percent. 

Tesla related stocks posted a notable rebound on the mainland market in the morning session on Tuesday after the US electric carmaker soared 20 percent in NASDAQ trading on Monday, its biggest rise in nearly seven years. 

CATL, the mainland electric battery maker, saw its shares touch the trading ceiling of 10 percent on Tuesday after confirming it would supply batteries to Tesla. 

Cloud office shares secured a 4.72 percent rise by 11:30 am Tuesday, as the coronavirus outbreak forced many people to turn to telecommute. Facemask and medical shares continued to soar as the country struggled to combat the deadly virus. 

On Monday, the mainland stocks underwent the biggest flash crash since the 2015 stock nosedive, with the Shanghai market plummeting by over 7 percent. The dive has been triggered by people’s worries over the coronavirus outbreak that gradually intensified during the Spring Festival holidays. 

The mood of panic also eased after the government initiated actions to replenish market liquidity and bolster market confidence. 

On Tuesday, China’s central bank injected an additional 500 billion yuan ($71.3 billion) via reverse repo operations, following its 1.2 trillion yuan worth of capital infusion on Monday, the largest single-day addition since 2004. 

Global Times