Chinese stocks rebound from 2-year lows as yuan stabilizes

Chinese stocks rebounded from two-year lows on Wednesday, despite falls in most Asian markets, as strong March industrial earnings data and a pause in the yuan’s fall eased some concerns about the impact of COVID-19 outbreaks. **The blue-chip CSI300 index rose 1.1% in the lunch break, after hitting its lowest level since April 2020 earlier in the session. The Shanghai Composite Index gained 0.4%.

** In Hong Kong, the Hang Seng Index gained 0.1%, while the Hong Kong China Enterprises Index gained 0.5%. **Asian equities largely weakened amid a global equity sell-off.

**Sentiment in China was bolstered by data showing Chinese industrial company profits grew at a faster pace in March compared to a year earlier, despite the negative impact on the economy from the COVID outbreaks -19 and the war in Ukraine. ** Meanwhile, China’s securities regulator said it would urge mutual funds to adhere to the concept of “long-term investment” and play a role in stabilizing markets.

** Also helping the market, the Chinese yuan stabilized against a rising dollar after the sharp falls of the past few weeks. **However, Xia Chun, chief economist at Yintech Investment Holdings, a Chinese wealth manager, said China’s stock market was still under pressure from geopolitical tensions and the economic threat of COVID outbreaks.

**”The most effective measure to support the market is to change the current anti-virus measures,” Xia said, referring to the country’s strict zero COVID policy. ** Authorities in the capital Beijing raced to eradicate a budding outbreak and avert the debilitating citywide lockdown that enveloped Shanghai for a month. Also, the Chinese military condemned the United States after a US warship passed through the sensitive Taiwan Strait.

** China’s tech-focused STAR market and start-up ChiNext’s board rebounded from steep falls recently. ** Metals stocks and new energy stocks jumped more than 3% each, but real estate stocks remained bearish.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

Garland K. Long