Chinese markets rebound as Beijing steps up support for equities

Chinese stocks staged a strong recovery on Wednesday after losses in the previous session, supported by fresh government measures to boost market confidence. The Shanghai Composite gained 2.16% to close at 3,686.2, while the Shenzhen Component jumped 4.22% to 11,335.7.

The rally followed steps by the People's Bank of China (PBoC) to support the stock market. Applications for its stock-purchase loan programme crossed 200 billion yuan. The central bank also conducted 100 billion yuan worth of swaps with brokers and fund companies to encourage share purchases and buybacks.

Technology stocks led the recovery, with strong gains in Cambricon Technologies (10.38%), SMIC (9.0%), Hygon Information Technology (10.29%), Zhongji Innolight (11.07%), NAURA Technology (10%) and Eoptolink Technology (13.35%).

The measures highlight Beijing's continued efforts to support equities amid weak consumer demand, sluggish economic growth and a prolonged property sector slowdown.

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