China Stocks Finish Flat on Government Support, Bucking Global Sell-Off

A strong show of government support dating back to last week helped China’s two main stock markets deflect fallout from a major U.S. sell-off that sent other Asian markets tumbling Thursday.
The Shanghai Composite Index was nearly unchanged for the day, after falling nearly 3% early in the trading day before clawing its way back. The more tech-heavy Shenzhen Component Index fell by 0.21%, while the internationally connected Hang Seng Index in Hong Kong fell by a steeper 1.01%.
Those declines were far milder than the major sell-off on Wednesday in New York, which saw the S&P 500 fall 3.09% and the tech-heavy Nasdaq Composite fall by an even steeper 4.43%.
China’s stock markets have been among the world’s worst performers this year, now trading in bear territory, as investors worry about Beijing’s slowing economy and the growing trade war with the U.S. But central leaders and local governments have stepped in since the end of last week in a highly coordinated move to boost sentiment by pledging support from the government and the large sector of state-owned enterprises.
Contact reporter Yang Ge (geyang@caixin.com)

- 1Cover Story: China’s Last Big Bet on Its Energy Reform in Race to Cap Carbon Emissions
- 2Exclusive: Citic Bank’s International Department Chief Becomes Unreachable
- 3Beijing Reins In Hong Kong Crypto Rush, Tells Firms to Scale Back
- 4China Unveils Two-Year Plan to Curb Steel Overcapacity
- 5Shanghai Raises Margins on Gold, Silver Amid Fed-Driven Market Frenzy
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas