This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Chinese Fund Managers Heed State Call to Invest After Stocks Stumble
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Chinese Fund Managers Heed State Call to Invest After Stocks Stumble
Markets

Chinese Fund Managers Heed State Call to Invest After Stocks Stumble

Editorial Board Published January 28, 2022
Share
Chinese Fund Managers Heed State Call to Invest After Stocks Stumble
SHARE

A January stock selloff has set off alarm bells in China, with state media urging big investors to hold their nerve, and several large fund houses dipping into their own capital to help support the market.

Stocks listed in Shanghai and Shenzhen have declined in tandem with global peers recently. That has caught out investors who believed onshore markets were well set for 2022, thanks to modest valuations and a government shift toward supporting growth, after pursuing a series of corporate crackdowns.

On Thursday, the CSI 300 index, which tracks the largest stocks listed in Shanghai and Shenzhen, fell 2% to its lowest since September 2020, according to Wind. Broader gauges of A shares, as onshore-listed stocks are known, also fell.

A day earlier, the state-owned Securities Times ran a front-page article blaming some domestic institutional investors for holding short-term views on some issues and failing to be the “ballast stone” of the market.

The article called on brokerage firms, fund managers, insurers and other institutions to “stiffen the spine” of A shares, and support the development of China’s capital markets.

China’s authorities sometimes use state media to try to influence the market. In July 2020, for example, a prominent editorial about a “healthy bull market” helped fuel a rapid rally, which then prompted the same outlet to strike a more cautious tone a few days later.

On Thursday, at least seven of China’s 10 biggest fund-management companies, including E Fund Management Co. and GF Fund Management Co., said they had put some of their own capital into in-house domestic stock funds.

The biggest investment was of 200 million yuan, or the equivalent of $32 million—a comparatively small sum for a market that was worth some $12.7 trillion at the end of last year.

The new Beijing stock exchange is meant to help smaller companies get more investment to fund innovation, according to a Chinese regulator. Its debut comes even as China tightens its grip on companies seeking listings overseas. WSJ’s Anna Hirtenstein explains. Photo: Li Xin/Zuma Press

The statements were similar, with most fund houses saying they invested because they are confident in the long-term health and stable development of China’s capital markets, and that investments would be held for at least a year.

Stocks in China have been slightly more resilient than some other markets so far this year in the face of looming tightening by the U.S. Federal Reserve.

The CSI 300 has fallen about 6.5%, and the broader Shanghai Composite is down about 6.7%. That compares to an 8.7% pullback for the S&P 500 and a 9.1% drop for Japan’s Nikkei 225.

The onshore Chinese market will be closed all of next week for the Lunar New Year holiday.

Write to Rebecca Feng at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article ‘Halloween Kills: Extended Cut’ 4K Ultra HD movie review ‘Halloween Kills: Extended Cut’ 4K Ultra HD movie review
Next Article IMF Says China’s Economic Imbalances Have Worsened IMF Says China’s Economic Imbalances Have Worsened

Editor's Pick

California dwelling of lacking child’s mother and father searched; father has served time for youngster cruelty

California dwelling of lacking child’s mother and father searched; father has served time for youngster cruelty

San Bernardino County sheriff’s investigators on Sunday, Aug. 17, searched the house of the mother and father of the infant…

By Editorial Board 9 Min Read
Farmer Needs a Spouse: John Sansone and Claire Dinette Break up!
Farmer Needs a Spouse: John Sansone and Claire Dinette Break up!

Studying Time: 2 minutes It's sadly over for one more actuality tv…

4 Min Read
Meri Brown Hints at “Accusations, Heartbreak” in Instagram Publish
Meri Brown Hints at “Accusations, Heartbreak” in Instagram Publish

Studying Time: 3 minutes Meri Brown seems to be going via it…

5 Min Read

Oponion

You’ve Most likely Heard of a California King Mattress. However What About an Alberta King?

You’ve Most likely Heard of a California King Mattress. However What About an Alberta King?

King-sized mattresses are the biggest mattress measurement you will get,…

July 16, 2025

Metropolis Man, Veteran, Former Division I Basketball Participant, Mine Advocate, Youth Coach, James Younger, Passes

James Archer Younger, 78, of Bridgeport,…

May 27, 2025

Baldwin shooting highlights risks of rushed film production

NEW YORK (AP) – The fatal…

October 29, 2021

Single household residence sells in Dublin for $1.3 million

8787 Bandon Drive – Google Road…

March 7, 2025

A Deep Dive Into REEF’s Versatile and Modern Footwear Assortment | Fashion

We independently consider all really helpful…

November 29, 2024

You Might Also Like

Trump’s 401(ok) enlargement fuels ethereum growth
Markets

Trump’s 401(ok) enlargement fuels ethereum growth

FOX Enterprise' Gerri Willis has the main points on the funding technique on 'Varney & Co.' Practically $4 billion of…

4 Min Read
Cracker Barrel inventory plunges amid model makeover backlash
Markets

Cracker Barrel inventory plunges amid model makeover backlash

FOX Enterprise’ Jeff Flock reviews on Cracker Barrel unveiling a brand new brand as a part of a broader model…

3 Min Read
Intel will get  billion from Softbank as White Home mulls stake
Markets

Intel will get $2 billion from Softbank as White Home mulls stake

Former Chrysler and Dwelling Depot CEO Bob Nardelli praises President Donald Trump’s daring financial play because the White Home eyes…

5 Min Read
Intel will get  billion from Softbank as White Home mulls stake
Markets

White Home mulls 10% stake in Intel after CEO assembly

Former Chrysler and Dwelling Depot CEO Bob Nardelli praises President Donald Trump’s daring financial play because the White Home eyes…

4 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?