Regulators attempts to stymie the slide in China’s stock market appears to be working again today, although on this occasion it appears small-cap stocks are benefitting more than their larger compatriots.
The CSI 500 index, which comprises the 500-largest listed firms on the Shanghai and Shenzhen bourses, has risen 3.6%, while the Shenzhen Composite and tech-heavy ChiNext indices have put on 3.2% and 3.8% respectively. These indices, amidst the market turmoil since mid-June, had fallen by more than 40%.
While small-cap stocks are rising, it’s a different story for larger firms. The benchmark Shanghai Composite is up a modest 0.2%, adding to the 10% plus rally seen during Thursday and Friday last week, while the SEC 50, an index made up of the 50-largest firms by market capitalisation on the Shanghai exchange, slid 2.4%.