stock market Photo:VCG

 

Chinese stocks rallied for a second consecutive day on Wednesday, with the benchmark Shanghai Composite Index rising 1.44 percent to close at 2,829.70 points. Turnover in Shanghai and Shenzhen bourses exceeded 1 trillion yuan ($139 billion) on Wednesday, the first time since November 21, 2023.

Observers said that the rising indexes reflects investors' recovering confidence combined with a stabilizing market, amid top securities regulator's all-out effort to shore up the equities, including pledges from the "national team" to ramp up investment in the A-shares, which staged their biggest rally in five years on Tuesday. 

The Shenzhen Component Index soared 2.93 percent on Wednesday, while the ChiNext Index, China's Nasdaq-style board consisting of largely technology enterprises, jumped 2.37 percent, rising for the third day in a row. Market gains were led by stocks of rare earth, superconductivity, large fund holdings as well as state-owned enterprises.

The net inflow of "northbound capital," or overseas money flowing into Chinese mainland's A-share market through stock connect programs, reached 1.684 billion on Wednesday, recording net purchase for seven consecutive days. 

The China Securities Regulatory Commission (CSRC) in recent days issued a number of policy statements aiming to address various aspects of the securities market and crack down on illicit conduct. The watchdog vowed on Tuesday that it will, in accordance with the law, suspend securities companies' new business involving share lending for short selling.

On the same day, it also held two symposiums themed on elevating the investment value of listed companies, as well as mergers and acquisitions of listed companies, respectively.

The commission has reportedly also organized visits from late January to key listed companies across the country, as part of the measures to step up supervision and improve valuation of listed companies. 

Relevant authorities in Shenzhen reportedly visited thee listed firms including logistics service provider SF Express, medical firm Mindray and property developer Vanke from Tuesday to Wednesday, and they vowed to boost the high-quality development of listed companies to elevate market confidence, maintain the stability of capital market and the high-quality development of the economy, Shanghai Securities News reported.

On Tuesday, state-owned Central Huijin Investment, a subsidy of China's sovereign wealth fund China Investment Corporation, announced plans to increase holdings in major Exchange-Traded Funds (ETFs), a move aimed at bolstering the stability and healthy operation of the A-share market.

On Wednesday, high-volume purchases were noticed in four major ETFs tracking CSI 300. Their trading volume totaled 38.23 billion yuan, up 25.2 billion yuan from Tuesday. 

In another development, the Communist Party of China (CPC) Central Committee has made a decision to appoint Wu Qing as secretary of the Party committee of the China Securities Regulatory Commission (CSRC), replacing Yi Huiman.

Meanwhile, the State Council made a decision to appoint Wu as chairman of the CSRC, replacing Yi.


Global Times