Politburo meeting boosts confidence that Beijing will support troubled stock markets
In rare reference to the nation’s capital markets, Beijing policymakers underscore their role in maintaining resilient capital markets “Amid recent equity weakness, this appears to reflect policymakers’ commitment to supporting the market,” said Scarlett Liu, an equity derivative strategist at BNP Paribas. That was echoed by brokerages including GF Securities and China Merchants Securities, which said that the tone regarding capital markets at the Politburo meeting signalled an increased chance that Beijing would take more meaningful actions to stabilise stocks. The technology-heavy Star Market 50 Index rebounded 3 per cent on Friday, as investors reassessed the sector’s outlook following both the Politburo meeting and an overnight rally in US equities driven by dip buying. Even after the bounce-back, the gauge still slumped 26 per cent in July, capping its worst monthly performance since its inception in 2020.
