BNP Paribas SA and Credit Suisse Group AG upgraded ratings of Chinese brokerages just as the nation’s stocks extended a slide that has wiped away $2.8 trillion of market capitalization.
BNP boosted Citic Securities Co. and Haitong Securities Co. to “buy” and “hold” respectively, with Hong Kong-based analyst Judy Zhang saying Friday that the government will do “whatever it takes” to restore investor confidence.
While Chinese regulators have been struggling to set a floor for the market’s decline, the government may slow initial public offerings and cut a stamp duty as part of a likely “basket of measures,” according to Zhang.
The Shanghai Composite Index fell 5.8 percent on Friday, while the securities regulator said that the number of IPOs will decline in July from June.
Separately, Credit Suisse this week upgraded Citic, Haitong, China Merchants Securities Co. and GF Securities Co. to “neutral” from “underperform” after declines in their share prices made the stocks more attractive.