Sheng Xiaolan, a 27-year-old county-level civil servant in Zhejiang province and a long-time investor, considers herself fortunate to have escaped the bloodbath on the bourses. Sheng, however, maintains that she has ample confidence in prospects for the A-share market, especially the ChiNext board, China's Nasdaq-style market.
Sheng, who earns about 4,000 yuan ($640) a month, has invested about 100,000 yuan in the A-share market starting last year and had earned about 100,000 yuan. In June, she felt that the stock market would have a mid-course correction and withdrew her investments. She tried to scoop up stocks three times in recent weeks but failed, although the loss was not much.
"I think the government's support measures are timely as they have helped stabilize the market," said Sheng. "I am particularly confident on the ChiNext board as it is closely linked with China's economic transition."
The ChiNext Index jumped by 3 percent to 2,435.76 points on Thursday, and of its 100 composite stocks, 24 rose by the daily 10 percent limit, while trading in 76 was halted.
But the situation was totally different on Tuesday. The ChiNext Index fell by 5.7 percent to 2,352.01 points, and of the 100 composite stocks, 50 declined by the daily 10 percent limit, while 50 saw trading halt.
The China Securities Regulatory Commission said on Wednesday that China Securities Finance Corporation Ltd, the national margin trading service provider, would purchase more shares of small and medium-sized listed companies to ease the liquidity crunch.
"The ChiNext board stock slide threatened people's confidence in China's emerging sector, and the better performance on Thursday showed the government's strong capabilities to stabilize the market," said Yi Huanhuan, head of the research department at Beijing-based Hongyuan Securities Co Ltd.
"Although the ChiNext board shares may see some adjustments later, they look good from a long-term perspective as they represent the new economy," said Yi.
Hong Hao, managing director and chief strategist at BOCOM International Holdings Co, said the market rebound was a technical fix, and the ChiNext board shares still have high valuation.
"The ChiNext board is entering a period of separating the truth from the fiction, and good companies will have a bright future, while the unscrupulous ones will be weeded out," said Hong.
Meanwhile, China Science and Merchants Capital Management Ltd, a private equity firm, said on Wednesday that it would purchase more than 5 percent of the shares of five listed companies, of which two are on the ChiNext board.
China on Saturday unveiled an "Internet Plus" action plan, aiming to integrate the Internet with traditional industries and fuel economic growth.
The notion of "Internet Plus", a national digital drive, was mentioned by Premier Li Keqiang in March this year while delivering the Government Work Report.
The action plan maps development targets and supportive measures for key sectors which the government hopes can establish new industrial modes by integrating with the Internet, including mass entrepreneurship and innovation, manufacturing, agriculture, energy, finance, public services, logistics, e-commerce, biology and artificial intelligence.
