Strong resilience and sound fundamentals of the Chinese economy have provided a solid foundation for stable and healthy development of financial markets, a state-owned newspaper said on Thursday.
Global financial markets have been volatile since Russia invaded Ukraine on February 24, with world stocks falling heavily, oil and other commodities surging, and the rouble plunging.
Chinese shares were not an exception. The blue-chip CSI 300 index closed on Wednesday at the lowest level since June 2020 and has lost nearly 8% this month.
But the official Shanghai Securities News said that recent short-term disturbance in the A-share market was mostly driven by external factors and should not last long.
Strong economic fundamentals should determine financial markets in the long run, the paper said. “We have full confidence in the Chinese economy,” it reported, citing multiple officials from domestic listed companies.
Stabilise Expectations
The official media added that these companies were ready to take various methods to stabilise the market’s expectations for companies and boost investor confidence.
Some 30 companies including the liquor-maker giant Kweichow Moutai reported earnings this week from the first two months of this year, a rare move meant to restore market confidence.
Meanwhile, more than 40 companies listed in Shanghai and Shenzhen, including Qi An Xin Technology Group and Zhejiang Chint Electrics, revealed in exchange filings plans to buy back their own shares. Others disclosed plans to increase their holdings.
“This round of market fluctuations is short-lived, mainly due to overseas factors, which cannot truly reflect the Chinese economic fundamentals,” the paper quoted Sui Li, board secretary at Guangzhou Automobile Group, as saying.
- Reuters, with additional editing by George Russell
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