Chinese firms, state media seek to soothe frayed nerves amid market slump

SHANGHAI : Strong resilience and sound fundamentals of the Chinese economy have provided a solid foundation for stable and healthy developments of financial markets, a state-owned newspaper said on Thursday, which could improve domestic market sentiment.

Global financial markets have been volatile since Russia launched what it called a "special military operation" in Ukraine on Feb. 24, with world stocks falling heavily, oil and other commodities surging, and the Russian rouble plunging.

Chinese shares were not an exception. The blue-chip CSI300 index closed Wednesday at the lowest level since June 2020 and has lost nearly 8per cent this month. [.SS]

But the official Shanghai Securities News said on its front page that recent short-term disturbance in the A-share market was mostly driven by external factors and should not last long as strong economic fundamentals should determine financial markets in the long run.

"We have full confidence in the Chinese economy," the paper reported, citing multiple officials from domestic listed companies.

The official media added that these companies were ready to take various methods to stabilize the market's expectations for companies and boost investor confidence.

Some 30 companies including the liquor maker giant Kweichow Moutai this week reported their earnings in the first two months of this year, a rare move meant to restore market confidence.

Meanwhile, more than 40 companies listed in Shanghai and Shenzhen including Qi An Xin Technology Group Co Ltd and Zhejiang Chint Electrics Co Ltd, revealed in exchange filings plans to buy back their own shares, with some others disclosing plans to increase their holdings.

"This round of market fluctuations is short-lived, mainly due to overseas factors, which cannot truly reflect the Chinese economic fundamentals," the official paper quoted Sui Li, board secretary at Guangzhou Automobile Group Co Ltd as saying