China stocks rebound from 15-month low after state media's call for support

The blue-chip CSI300 index rose 0.7% to end at 4,712.31, while the Shanghai Composite Index gained 0.7% to 3,455.67. ** "The recent weak performance in the A-share market is an overreaction to negative news," said state-backed Securities Daily in an editorial.


Reuters | Shanghai | Updated: 26-01-2022 13:53 IST | Created: 26-01-2022 13:31 IST
China stocks rebound from 15-month low after state media's call for support
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China stocks closed up on Wednesday, with the blue chips rebounding from a 15-month low hit in the previous session, after state media urged financial institutions and pension funds to help stabilise markets. The blue-chip CSI300 index rose 0.7% to end at 4,712.31, while the Shanghai Composite Index gained 0.7% to 3,455.67.

** "The recent weak performance in the A-share market is an overreaction to negative news," said state-backed Securities Daily in an editorial. ** China's blue chips dropped to a 15-month low on Tuesday, on concerns of tightening Fed policies, geopolitical tensions in Europe and uncertainties in the market ahead of the incoming Chinese New Year holidays.

** The Daily added that financial institutions such as securities firms, fund houses and social security funds should take the responsibility to maintain the stable and sustainable development of China's capital markets. ** The consumer staples sector gained 1.1%, the brokerage index rose 1.8%, while the machinery sub-index jumped 2.2%.

** New energy shares climbed 2%, with the wind power industry up nearly 4%. President Xi Jinping said China's ambitious low-carbon goals should not come at the expense of energy and food security or the "normal life" of ordinary people. ** However, the healthcare sub-index lost 1.9%, as local media 21st Century Business Herald reported that a seventh round of centralised pharmaceutical procurement has been launched, part of a push to lower medical costs for patients.

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

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