Beijing’s financial bailout spikes them after stocks plunge in Hong Kong, mainland China

Stock markets in mainland China and Hong Kong, which plunged for two consecutive days due to the failure of US-China economic negotiations, rebounded in an unusually short period after the Chinese financial commission issued a bailout signal on March 16.

“This is because the Chinese stock market has always been a’policy market’and is heavily influenced and manipulated by Chinese Communist Party (CCP) officials rather than being driven by market rules like the regular stock market. It shows that we’ve been there, “Lu Tianming told The Epoch Times on March 18.

On March 16, Liu He, Deputy Prime Minister of China and Head of the State Council’s Financial Stability Development Committee (FSDC), needs to maintain “stable operation” of capital markets in a special session on real estate companies, Chinese stocks. Emphasized sex. , And the financial markets of Hong Kong, according to For official Chinese media coverage.

Bank of China’s Central Bank, Securities Regulatory Commission, Bank of China Insurance Regulatory Commission, and FSDC’s subordinate financial regulators, including state control of foreign exchange, swiftly echo They perform the necessary tasks and make every effort to maintain a stable capital market.

The Chinese market responded with a strong backlash from Chinese concept stocks. According to March 17, both the A-share market and Hong Kong stocks soared on March 16, and the Shanghai Composite Index recorded the largest one-day rise in three years. report According to Government Times with state support.

Compared to China’s A-share market, Hong Kong’s stock market has rebounded more violently. The Hang Seng Index rose 9.08% to over 20,000 points. This is the largest daily rise since October 2008. The Hansen Technology Index has also risen brilliantly, rising 22.20% by the end of the day. 1-day gain in index history since the index was released.

China’s concept stocks in Hong Kong also recovered, with Meituan up more than 32% and Alibaba up more than 27%.

Dong Yun, Deputy Director of Industrial Finance Research Base, Chinese Academy of Social Sciences, Said After the meeting of the Finance Committee, the government issued a clear policy signal, saying that the problems of the Chinese market are “gradually resolved through the adjustment and reform of institutional mechanisms,” the state’s economic view on March 16.

FSDC was founded in November 2017 and its duties now include more than super-ministerial duties. Each conference held by the FSDC can be seen as an important statement of financial market directive stance and work development that has a direct impact on the Chinese stock market.

The FSDC move came about because the US-China talks in Rome seemed to fail to generate a common understanding. The global market is worried that all of China’s financial products will become junk, causing a wave of Chinese capital sales.

On March 14, US National Security Adviser Jake Sullivan and Central Foreign Affairs Director Yang Jiechi met in Italy for seven hours. The negotiations were ultimately considered a failure, and the US side concluded that Beijing was determined to support Russia in the war with Ukraine.

On the same day, Hong Kong’s stock market withstood a severe recession and key indices continued to decline. The market value of A-shares has been wiped out from the previous trading day by 2,241.85 billion yuan (about $ 352.8 billion). On March 15, the Hang Seng Index recorded the third largest monthly decline in nearly 30 years. The Hang Seng Index was also shocked and fell 8.10% on the same day. according to To the Chinese media.

“Such a plunge not only represents a capital outflow in financial markets, but also represents an outsider’s judgment on China’s economic outlook, and the Chinese Communist Party is very scared,” Mr. Lou said. And social stability, so it turned into a panic and rushed to save the market. “

“The Chinese Communist Party has created a false image of prosperity to attract foreign capital,” Lou said.

“if [economic] The bubble bursts and affects it [the CCP’s] It will attract foreign investment and try to have a further impact on the economy. That will be the beginning of a vicious circle for the Chinese government. “

Jessica Mao


Jessica Mao is a writer of The Epoch Times, focusing on topics related to China. She started writing her Chinese version in 2009.