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Markets

Signs of Optimism Emerge for China Stocks After State Buying

  • CSI 300 rose in Wednesday afternoon trading, closing up 0.9%
  • Valuations of Chinese stocks remain attractive, investors say
An electronic ticker displays stock figures in Pudong's Lujiazui Financial District in Shanghai, China, on Feb. 7.

An electronic ticker displays stock figures in Pudong's Lujiazui Financial District in Shanghai, China, on Feb. 7.

Photographer: Qilai Shen/Bloomberg

The stock intervention by China’s state-backed funds seems to have added a dose of optimism for market watchers waiting on the battered market to hit a bottom.

The benchmark CSI 300 Index closed 0.9% higher on Wednesday, after the so-called national team’s buying helped shares stage a V-shaped rebound in the previous session. The equity gauge had plunged into a bear market just before the Lunar New Year holidays, confounding a growing number of China bulls.