“The securities regulator is said to have held a closed-door meeting with analysts, that may have fueled expectations there’ll be some moves to stabilize the market,” Yip told Bloomberg.
Chinese equities have plunged into a bear market since the January highs due to a variety of factors, including Beijing’s deleveraging campaign and its impact on liquidity, a trade dispute with the U.S., a depreciating yuan currency and signs of a slowing economy.
“Authorities certainly don’t want to see stocks slide further, valuations at current levels appear attractive, though it would be hard to revive sentiment on the market,” Shen Zhengyang, a strategist with Northeast Securities Co., told Bloomberg. “The trade negotiations that are dragging on will continue to cloud the market outlook.”
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