Chinese stocks rose on Monday, as an unprecedented series of support measures unleashed by Beijing brought some relief to a market whose headlong slide over the past three weeks had raised fears about the stability of the world’s second-biggest economy.
In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China’s state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank.
The CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen closed up 2.9 percent, while the Shanghai Composite Index .SSEC gained 2.4 percent.
That represented a significant pullback, however, from an initial burst of euphoria that pushed both indexes up around 8 percent when trading began, raising questions about whether the rebound can be sustained.
Oliver Barron, China policy research analyst at NSBO, said it wasn’t just faith in the markets at stake after investors had ignored official measures to prop up equities as indexes slid around 12 percent last week.
“After the market continued to fall despite myriad support measures, the government reached peak panic mode and must have worried that investors would not only lose confidence in the markets, but in the government itself,” he said.
The rapid decline of China’s previously booming stock market, which by the end of last week had fallen around 30 percent from a mid-June peak, had become a major headache for President Xi Jinping and China’s top leaders, who were already struggling to avert a sharper economic slowdown.
SouFun Holdings Ltd (NYSE:SFUN) operates a real estate Internet portal, and home furnishing and improvement Websites in the People’s Republic of China. SouFun Holdings Ltd shares are trading 35.81 % above their 52 week low price after the last close and -41.61 % below the 52 week high. Its latest closing price was down -8.21 % from the average-price of 200 days while it kept its distance from the SMA50 at -13.84 % and -19.55 % compared with the SMA 20.
Shares of Vipshop Holdings Ltd – ADR (NYSE:VIPS) were 22.42 % off 52 week lows as of the latest close and -32.45 % below the 52 week high. Its latest closing price was down -32.45 % from the average-price of 200 days while it maintained a distance from the SMA 50 at -12.52 % and -18.47 % compared with the SMA 20. VIPS through its subsidiaries, operates as an online discount retailer for various brands in the People’s Republic of China.
Baidu Inc (ADR) (NASDAQ:BIDU) offers Chinese language search platform on its Baidu.com Website that enables users to find relevant information online, including Web pages, news, images, documents, and multimedia files through links provided on its Website; and international products and services to users in other countries. The stock’s latest price traded at 6.98 % off 52 week lows after the closing bell and was -24.99 % behind its 52 week high. Its latest closing price was -12.55 % below the SMA200 while the distance from the SMA 50 and SMA 20 was -6.66 % and -8.03 % respectively.
Alibaba Group Holding Ltd (NYSE:BABA) is trading 3.16 % higher than the 52 week low price and -33.14 % below the 52 week high. The stock’s latest closing price was -13.53 % down from the average-price of 200 days while it kept its distance from the SMA50 at -7.30 % and – -6.34 % compared with the SMA 20. Alibaba Group Holding Ltd (NYSE:BABA through its subsidiaries, operates as an online and mobile commerce company in the People’s Republic of China and internationally.
AirMedia Group Inc (ADR) (NASDAQ:AMCN) operates out-of-home advertising platforms primarily in the People’s Republic of China. AirMedia Group Inc so far this year has moved up 75.78 % and its monthly performance stands at -36.97 %. The stock was up 172.73 % from its 52 week low and was -41.56 % below the 52 week high. Its latest closing price was up 44.29 % from the average-price of 200 days while it kept its distance from the SMA50 at -17.36 % and -18.71 % compared with the SMA 20.