Chinese state newspaper seeks to talk up beleaguered stock market, citing buy-backs, improving economy

Investors should be optimistic, as multiple signs emerge that bode well for equities, the Securities Daily said in an opinion piece

‘Investors should not care too much about the index level, and be confident in looking forward from a longer perspective,’ said the editorial

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China’s state propaganda machine is once again seeking to instil confidence in stock investors. Photo: EPA-EFE

Published: 1:30pm, 20 Sep 2022Updated: 3:21pm, 20 Sep 2022

China’s state propaganda machine is once again seeking to instil confidence in stock investors, urging them to take a long-term view of a market that is increasingly underpinned by positives from an improving economy to a flurry of buy-backs and attractive valuations.

Investors should not be pessimistic about the stock market, as multiple signs emerge that bode well for equities, the Securities Daily said in an opinion piece on its front page on Tuesday.

“For mature investors, following the market trend and seeing the logic clearly is the long-term winning strategy, instead of caring about the index level in the short term,” the editorial said. “Currently, the economic trend, which is closely linked to the performance of A shares, has shown signs of picking up, which investors should observe carefully.”

The newspaper, which is one of the four authorised publications for listed companies’ filings, is owned by the Economic Daily Press Group that is ultimately controlled the Communist Party’s propaganda department.

The opinion piece came as fears of a sizeable interest-rate increase by the Federal Reserve later this week grip global markets. The Fed will probably lift the borrowing cost by at least 75 basis points when its open-market committee meets on Thursday local time.

China’s CSI 300 Index edged up 0.1 per cent on Tuesday, snapping a streak of four daily declines. Still, the gauge remains down 13 per cent from a high on July 4.

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