Chinese state media reportedly called on various financial institutions to «stiffen the spine» of A-shares amid a global downturn in equity markets.
State-owned «Securities Times» published a front page article yesterday, calling on brokerage firms, fund managers, insurers and other institutions to «stiffen the spine» of A-shares and support capital market development in China.
It also attributed market volatility in China to short-termism on the part of domestic institutional investors and their failure to be the market's «ballast stone» – rocks that are used to provide stability for a vehicle, often a ship.
CSI 300 is down nearly 6 percent year-to-date after an already challenging 2021.
Fund Support
On the same day as the article’s publication, seven out of China’s 10 largest fund houses announced their support for the markets.
The companies said they were confident in the long-term outlook and committed to holding investments into the market via their in-house funds for at least one year.
«Good Example»
Fund pledges totaled at least an estimated 900 million yuan ($142 million) thus far from various players including E Fund Management and GF Fund Management.
Separately, a «Securities Times» article said that such acts by fund houses were «setting a good example».
