After a decline the previous day, the Chinese stock market rebounded. Bargain buying during the afternoon session helped stabilize the market.
On this day, the Shanghai Composite Index closed up 0.40% at 3,828.47, the Shenzhen Component Index rose 1.10% to 13,658.44, and the ChiNext Index increased by 1.55% to 3,378.70.
The People's Bank of China announced plans to inject approximately 2.1 trillion yuan in short-term liquidity into the market through reverse repos from now until early August. While the reverse repo rate will remain unchanged, this move is seen more as a measure to stabilize market liquidity rather than a significant easing of monetary policy. However, it is also considered to have played a role in calming market sentiment.
Additionally, ahead of earnings reports from major U.S. tech companies like Microsoft, Meta, Amazon, and Apple, investors began purchasing AI-related stocks, which positively impacted the Chinese market. There are expectations that if the big tech companies meet earnings expectations, concerns over an AI bubble may ease. Analysts also noted that the previous day's corrections were excessive, prompting market participants to engage in bargain buying.
Zhaoshang Securities stated, "With last week's ETF inflows exceeding 50 billion yuan and recent signals of market stabilization, there is a growing consensus that the Chinese market is nearing a bottom. Even if additional declines occur, the Chinese authorities' market stabilization measures will enhance investor confidence."
On this day, the food and beverage sector showed strong performance, with companies like Yiming Food and Junyao Health hitting their daily price limits. As cost pressures eased and prices rose in areas such as dairy products, seasonings, and processed meats, forecasts indicated a recovery in profitability for these companies, leading to an overall rise in food and beverage stocks.
The retail sector also saw gains, with Dongbaijituan and Guoguang Lianshuo reaching their daily price limits. News from a meeting held by the Shanghai municipal government on the 28th emphasized the need to significantly enhance services for foreign tourists to boost consumption, which served as a positive catalyst. The meeting also set a long-term goal for Shanghai to become an international consumption hub.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7899 yuan, a decrease of 0.0029 yuan from the previous trading day, reflecting a 0.04% increase in the yuan's value.
* This article has been translated by AI.
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