China’s resilient economic fundamentals lay solid foundation for state media markets

SHANGHAI, March 10 (Reuters) – The strong resilience and sound fundamentals of China’s economy have provided a solid foundation for stable and healthy developments in financial markets, a public newspaper said on Thursday, which could lift market sentiment. interior.

Global financial markets have been volatile since Russia launched what it called a “special military operation” in Ukraine on February 24, with global stocks falling sharply, oil and other commodities rising and the plummeting russian ruble.

Chinese stocks were no exception. The blue-chip CSI300 index (.CSI300) closed Wednesday at the lowest level since June 2020 and is down almost 8% this month.

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But the official Shanghai Securities News said on its front page that the recent short-term turmoil in the A-share market was mainly due to external factors and is not expected to last long as strong economic fundamentals are expected to determine financial markets in the long run. term.

“We have full confidence in the Chinese economy,” the newspaper reported, citing several officials from domestic listed companies.

State media added that these companies are ready to adopt various methods to stabilize market expectations of companies and boost investor confidence.

About 30 companies, including liquor-making giant Kweichow Moutai (600519.SS), reported their earnings for the first two months of this year this week, a rare move meant to restore market confidence.

Meanwhile, more than 40 companies listed in Shanghai and Shenzhen, including Qi An Xin Technology Group Co Ltd (688561.SS) and Zhejiang Chint Electrics Co Ltd (601877.SS), disclosed in exchange filings their intention to buy back their own shares, with some others disclosing plans to increase their stakes.

“This series of market fluctuations is short-lived, mainly due to foreign factors, which cannot really reflect China’s economic fundamentals,” the official newspaper quoted Sui Li, secretary of the board of directors of Guangzhou Automobile Group, as saying. Co Ltd (601238.SS).

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Reporting by Winni Zhou and Andrew Galbraith; Editing by Bernard Orr

Our standards: The Thomson Reuters Trust Principles.

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