The CSI300 is up 1.3% early trading today with the help of comments from the sovereign wealth fund and the regulator.
Chinese stocks are in an interesting spot because of week-long holidays that will start on Friday. That may ramp up the pressure to act sooner.
Bloomberg kicked off speculation about a rescue on Jan 22, saying officials were considering a 2 trillion yuan rescue. Since then though, it’s been quiet.
Then again, from a policymaker perspective you could argue that announcing something over the break, or at the end of the break would be a good time for a reset. Whatever comes next, the stakes are higher right now and there’s global focus on Chinese stocks that I haven’t seen in awhile.
CSI300 daily