The Shanghai Composite Index (SSE) continued its upward trajectory, marking the seventh consecutive trading day of gains on Thursday and approaching the significant 3,000-point milestone.
On Thursday, the SSE closed up 1.27 percent at 2,988.36 points. This consistent rally has been propelled by sustained policy support from regulators and robust inflows from long-term investors.
Earlier this month, the China Securities Regulatory Commission (CSRC) took decisive steps by suspending new securities lending and actively encouraging mergers, acquisitions, and restructuring among listed companies. These measures aim to stabilize the market and enhance the quality of listed entities.
To further reinforce market stability, the CSRC conducted a series of meetings with experts and market participants on February 18-19. The discussions focused on strategies to improve the capital market, with experts advocating for a blend of short-term measures to boost investor confidence and long-term reforms to strengthen institutional foundations.
\"The current stock market requires continuous efforts to stabilize expectations in the short term and promote vigorous long-term institutional reform and construction,\" stated Wu Xiaoqiu, dean of the National Finance Research Institute at Renmin University of China, to the Economic Observer.
Tian Xuan, associate dean at PBC School of Finance of Tsinghua University, emphasized, \"Increasing investment returns is the primary task in effectively enhancing investor confidence. Prioritizing improvements in listed company quality is key to driving investment.\"
U.S. asset managers are also optimistic about the Chinese market's recovery. Jonathan Krane, CEO of China-focused ETF provider KraneShares, described it as a \"once-in-a-lifetime opportunity\" to acquire Chinese equities at historically low valuations, highlighting the potential for substantial returns.
The positive sentiment was further buoyed by China's announcement on Tuesday of a greater-than-expected cut in key mortgage rates, which invigorated investor confidence. Chen Jiahe, chief investment officer at Novem Arcae Technologies, noted that while lowering interest rates is an important monetary tool, more targeted fiscal tools would be more effective in addressing specific industries' needs.
Reference(s):
Shanghai Composite Index rise for a 7th day, nearing 3000 points
cgtn.com
