Caixin
Oct 25, 2018 08:26 PM
FINANCE

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

An investor checks stock prices on his smartphone at a brokerage in Beijing on Wednesday. Photo: IC
An investor checks stock prices on his smartphone at a brokerage in Beijing on Wednesday. Photo: IC

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)

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