The dismal run in Chinese stocks looked set to continue today, with the Shanghai Composite briefly hitting a fresh four-year low as seen here. But the ‘plunge protection team’ stepped in to reverse that and that helped to see the index close higher by 0.4% on the day:
Shanghai Composite index
The CSI 300 index fell briefly to a fresh five-year low before also reversing to end the day higher by 1.4%. And now in the final hour of trading, the Hang Seng is up by 0.9% but still hovering around its lowest levels since November 2022.
The late bounce today is not exactly meaningful though as sentiment surrounding China and its economy is almost as bad as it ever has been. There are plenty of big question marks on the outlook and even more so on what Beijing can do to stimulate domestic demand and get the recovery back on track.
Here is Adam with some food for thought yesterday: The China rout could be a tremendous opportunity but it needs a catalyst