China’s ‘national team’ intervenes to stabilise markets after Beijing’s pledge of support
The move comes after Communist Party newspaper suggested Beijing has policy tools ready to counter the fallout from a US trade war
The market intervention was reported by Chinese state media, citing unnamed sources. The report drove up stock prices, narrowing losses in the domestic A-share market. It followed assurances of support published in the Communist Party’s official newspaper, the People’s Daily, as the country’s leaders try to shore up market and investor sentiment.
“We’ll resolutely defend the stable operations of [China’s] capital market,” it said.
Investment banks such as Morgan Stanley and UBS have predicted that China’s central bank is likely to announce rate cuts and heightened fiscal spending to shore up the economy in the near future.
“The party had already anticipated this new round of American economic suppression, has thoroughly assessed its potential impacts and prepared contingency plans with sufficient buffers and policy flexibility,” wrote People's Daily in a commentary piece on Sunday.