Chinese regulators are making a concerted effort to end the country’s stock rout, as they plan to brief President Xi Jinping on the state of the market. This comes amid anticipation and as stocks in China see a rebound following this news. Despite the rebound, traders remain cautious as previous efforts to support the economy and stabilize the market have not been successful, with $7 trillion of value being wiped off since 2021. The news about the meeting with President Xi is raising hopes that this time will be different as a further plunge in the market could damage consumer confidence as China enters the weeklong Lunar New Year holiday.
As Chinese stocks continue to rebound following the news of the planned briefing of President Xi Jinping, traders remain hopeful that this time there will be more concrete efforts to stabilize the market. Chinese stocks have experienced a significant drop in value, with $7 trillion being wiped off, leading to concerns about consumer confidence. The news of an upcoming meeting with President Xi is raising hopes among traders for more decisive action to support the market, as piecemeal approaches have failed so far. The involvement of President Xi in the nation’s financial and economic policies is seen as a sign of the seriousness of the situation and the efforts being made to stabilize the market.
Regulators remain cautious about the potential outcome of the meeting, as previous efforts to support the stock market have seen temporary rebounds followed by renewed selloffs. However, the prospect of a renewed foreign inflow and the involvement of President Xi in financial and economic policies is seen as a potential turning point in the efforts to stabilize the market and restore investor confidence. Despite the uncertainty, traders are closely monitoring the situation and hoping for a more substantial and sustained rally in the near future.