MCHI - China Stocks Surge After Beijing Announces New Measures Xi Jinping Steps In | Benzinga
Chinese equity markets rebounded strongly on Tuesday after pledges of support from government and agency officials followed recent market routs that took several main indexes to five-year lows.
At the close in China, the main indexes were all significantly higher. The Hang Seng in Hong Kong gained 4%, with index heavyweights such as JD.com (NASDAQ:JD) and Alibaba (NASDAQ:BABA) both nearly 8% higher. The top gainer was beleaguered real estate company Longfor Properties (OTC:LGFRY), up 10.1%.
Mohamed El-Erian, senior economic adviser to Allianz, said on X, formerly known as Twitter, on Tuesday: “Major indices surged higher today on signs of growing government concern about the negative spill over effects on confidence and the economy of recent market hits.”
It has been reported many times over recent trading sessions that Chinese mainland equity markets have lost around $6 trillion in the last three years. But the selloff has intensified as foreign investors have fled the market, leaving domestic investors with little alternative but to sell also.
Indeed, in December alone, global funds sold around $2 billion ...