Status: 08.02.2022 3:09 p.m
According to media reports, state funds supported the stock markets in China today. At the same time, there were further upheavals in the real estate market.
It had looked like the biggest one-day drop since last August before Chinese stock markets in Shanghai and Shenzhen recovered. The CSI 300 Index, which tracks the major stocks in the two markets, ended trading modestly down 0.6 percent after temporarily losing 2.4 percent on the day.
According to media reports, state funds intervened in the stock market. Two people familiar with the matter told the Bloomberg news agency that the funds had intervened in the afternoon to slow the fall in prices.
Such interventions by sovereign wealth funds, also known as the “national team”, had been observed before. They had supported the markets during the session of the National People’s Congress last March. This time there may be a connection with the ongoing Winter Olympics in Beijing.
More downgrades in real estate
Recently, the negative news from the Chinese real estate market had piled up again. The rating agency Fitch further lowered its credit rating for the Logan Group after further debts off the real estate developer’s balance sheet became known. Developer Yango Group was also downgraded by Chinese agencies.
The Chinese central bank also intervened in the market again today. Bank loans for public rental housing projects would no longer be subject to regulatory restrictions, the Bank of China said today. In doing so, she lifted a year-long regulation of such loans.