Photo: VCG

China's Shanghai Composite Index rose for the fourth straight day on Friday to get back above the 2,900-point mark amid the rollout of a series of policies to support the development of the capital market and the macro-economy.

Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co, told the Global Times on Friday that the A-share market had been near the bottom level, calling for confidence and patience in the Chinese stock market.

The Central Financial Work Conference called for efforts to accelerate the building of a nation with a strong financial sector. The goal cannot be achieved without a prosperous capital market, which provides support for enterprises' transformation and upgrading as well as the country's sci-tech innovations, Yang said, adding that more policies to support the long-term and healthy development of the capital market are expected.

Pan Gongsheng, governor of the People's Bank of China (PBC), the central bank, said at a press conference on Wednesday that China will cut the reserve requirement ratio (RRR) by 50 basis points from February 5, which is expected to inject 1 trillion yuan in long-term liquidity.

Underscoring the central government's resolve to bolster the economy, the news boosted investors' confidence and reversed the stock market's recent downward trend.

On Friday, the Ministry of Commerce declared 2024 the "year of promoting consumption" and stressed the need to strengthen consumption rebound momentum. The ministry said it would continue to relax restrictions on foreign investment and improve the business environment in order to attract more investment.

Meanwhile, China's Ministry of Housing and Urban-Rural Development on Friday called on various cities to adjust real estate policies based on their local conditions, and pledged to treat developers equally in terms of financing so as to ensure the healthy and steady development of the real estate sector, China Securities Journal reported.

Investors poured almost $12 billion into Chinese equity funds in the week to Wednesday in the largest inflow seen since 2015 and the second-largest ever, Reuters reported on Friday.

Global Times