China’s under-siege stock market looks set for a reprieve this morning with futures markets pointing to hefty gains.
Front-month CSI 300 futures – the 300 largest listed firms in Shanghai and Shenzhen – have risen 8.5% upon the resumption of trade. In recent weeks the index has fallen close to 30%, but is still up more than 70% on a year ago.
Over the weekend brokerages and fund managers vowed to buy massive amounts of stocks, helped by China’s state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank according to a report from Reuters.
Chinese IPO listings, something that has contributed to reduced market liquidity in recent weeks as investors pulled money out of existing stocks to fund new share purchases, have also been temporarily postponed.
The moves so far appear to have worked.
Mainland Chinese stocks begin trading at 11.30am Sydney time.
Business Insider Emails & Alerts
Site highlights each day to your inbox.