China’s benchmark Shanghai market edged up again on Tuesday morning after temporarily losing the mark of 2,900 points, while the Shenzhen and ChiNext board rose by more than 1 percent following a sharp plunge the day before, as market sentiment remained split but rather sensitive amid COVID and other challenges despite moves by officials to reassure the market by replenishing liquidity and stressing that China’s economic fundamentals remain strong.

China’s thee major indexes opened higher on Tuesday, with the Shanghai Composite Index opening 0.07 percent higher than previous close, the Shenzhen Component Index 0.22 percent higher, while the tech-heavy ChiNext board edged up by 0.17 percent. 

The two markets have fluctuated in both directions, with the Shanghai market at one stage  dropping by more than 1 percent to 2,898 points. By 10:42 am, the Shanghai market was up 0.63 percent, while the Shenzhen market edged up 1.32 percent. The ChiNext board was up by 1.97 percent.  

Clothing, coal and agricultural planting shares led the fall, while retail shares edged up. 

The struggle on markets between red and green again showed a somewhat split and vulnerable market sentiment after China’s COVID19 situation continued to remain grim and uncertain. On Monday, the Shanghai market plunged by more than 5 percent beyond the psychological mark of 3,000 points, the lowest level since June 2020. 

A representative from the People’s Bank of China (PBC), China’s central bank, noted that the recent fluctuation on financial markets was mostly caused by mixed investor sentiment.

But the person stressed that China’s economic fundamentals remain strong, economic growth prospects are significant, while efforts to prevent and dissolve the financial risks have achieved concrete progress. 

The PBC will increase the level of support lent by stable monetary policies to real economy, especially the micro companies and enterprises that have been hit hard by the COVID19 pandemic. The bank would launch refinancing to support areas like scientific innovation, aviation and coal exploitation, in a bid to keep liquidity at a reasonably adequate level. 

Global Times