Stronger action expected against stock crash in China

Expectations that the Chinese government will take stronger rescue steps continue to support the country’s stocks today. Following yesterday’s news that Chinese President Xi Jinping will be briefed by the heads of the country’s regulatory bodies, expectations that the government could take further steps against the recent sell-off in stocks had increased. Bloomberg’s sources with knowledge of the matter reported that regulators, led by the China Securities Regulatory Commission, plan to brief top leaders on market conditions and the latest policy initiatives. With this news, the CSI 300 index closed Tuesday up 3.5 percent, the strongest gain since the end of 2022. The index is still up 0.45 percent as of 06:43 GMT this morning. About $7 trillion has been wiped off the market value of Hong Kong and Chinese stocks since their peaks in 2021, and incidental approaches to support the economy and stabilize markets have so far failed to boost confidence. As China prepares for the week-long Lunar New Year holiday, policymakers are focused on preventing further damage to consumer confidence and stabilizing the stock market.