Beijing’s Market-Support Pledges Falling Flat With Traders
- Daily average turnover has reached the lowest level this year
- Volatility has declined and breadth is relatively weak
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China’s top-down vow to rejuvenate markets hasn’t resonated with investors, as initial excitement evaporates in a mire of continued troubles for the country.
Nearly two months after authorities surprised investors by pledging to “invigorate capital markets and boost investor confidence,” traders are not biting. The MSCI China gauge declined more than 1% on Thursday to head for a 10-month low. The onshore benchmark CSI 300 Index touched a fresh low for the year earlier this week, while the tech-heavy ChiNext Index is at its lweakest level since 2020.