China Stocks Fall as Rescue Efforts Falter
The Shanghai Composite fell 1.2% to 3,595 on Tuesday, while the Shenzhen Component dropped 0.2% to 10,998, as renewed efforts to revive 2024 stock market rescue measures failed to lift sentiment. The central bank said it would resume operations under its securities, funds and insurance companies swap facility (SFISF) when necessary, allowing eligible institutions to exchange assets for more liquid ones to fund stock purchases and expand participation and lower swap fees. Meanwhile, the PBOC will cut its relending rate to 1% from 1.25%, make the facility permanent and encourage banks to expand lending for corporate share buybacks and major shareholders’ stake increases. The measures have so far failed to reignite investor confidence amid persistent economic weakness and uncertainty over corporate earnings. AI-linked hardware and PCB stocks also came under pressure, led by Zhongji Innolight (-7.3%), Shennan Circuit (-4.8%), WUS Printed Circuit (-4.1%) and NAURA Technology (-1.9%).
The Shanghai Composite fell 1.2% to 3,595 on Tuesday, while the Shenzhen Component dropped 0.2% to 10,998, as renewed efforts to revive 2024 stock market rescue measures failed to lift sentiment. The central bank said it would resume operations under its securities, funds and insurance companies swap facility (SFISF) when necessary, allowing eligible institutions to exchange assets for more liquid ones to fund stock purchases and expand participation and lower swap fees. Meanwhile, the PBOC will cut its relending rate to 1% from 1.25%, make the facility permanent and encourage banks to expand lending for corporate share buybacks and major shareholders’ stake increases.
The measures have so far failed to reignite investor confidence amid persistent economic weakness and uncertainty over corporate earnings. AI-linked hardware and PCB stocks also came under pressure, led by Zhongji Innolight (-7.3%), Shennan Circuit (-4.8%), WUS Printed Circuit (-4.1%) and NAURA Technology (-1.9%).