Asia Stocks Up as CSRC Talked with Banks to Calm Worries

On Thursday, July 29, Asia stocks climbed after the China Securities Regulatory Commission (CSRC) initiated a meeting with top global investment banks to calm financial worries.

In the Tokyo Stock Exchange, the broader TOPIX Index and the Nikkei 225 both rose 0.22% or 4.23 points to $1,923.88. And 0.71% or 194.39 points to $27,776.05, respectively.

The latter’s top performers were led by Nissan Motor Co. Ltd, which gained 6.77% or 40.20 points to $5.77 per share.

This was followed by Advantest Corp. and SCREEN Holdings Co. Ltd., which both jumped 6.67% or 610.00 points to $88.82 and 5.16% or 480.00 points to $89.09, respectively.

Likewise, Hong Kong’s Hang Seng Index increased 2.74%, with a net gain of $698.43. This sent the stocks higher at $26,172 per share.

Its best performers include  Alibaba Health Information Technology Ltd., which spiked 16.38% or 1.72 points to $1.57 per share.

This was followed by Country Garden Services Holdings Co. Ltd and Meituan, which both smashed 9.40% or 5.70 points to $8.53 and 8.72% or 18.20 points to $29.17, respectively.

Consequently, South Korea’s KOSPI and Australia’s S&P/ASX 200 both soared 0.06% or 1.90 points to $3,238.76 and 0.46% or 34.30 points to $7,413.60, respectively.

Moreover, China’s Shanghai Composite and Shenzhen Component Index both progressed by 1.04% or 34.97 points to $3,396.56. And 2.41% or 339.77 points to $14,426.19, respectively.

Trina Solar, Shenzhen JPT Opto-Electronics, and China National Electric Apparatus Research Institute all led SSE’s gains by 14.63%, 12.16%, and 10.90%.

Chinese Authorities’ Meeting with Banks

Furthermore, Chinese authorities held a meeting last Wednesday night with the executives of some top global investment banks. They aimed to calm the financial markets.

This includes Credit Suisse, Goldman Sachs, JPMorgan, and UBS. Mainly since CSRC only invited foreign brokerages with existing licenses to operate on the mainland.

The online meeting was in addition to the local official’s efforts to shore up investors’ confidence in China’s stock markets.

Additionally, Chinese markets had been marked by a vast regulatory action that involved companies in the $120 billion private tutoring sector and tech giants.

As a result of the talks, Chinese stocks sharply rebounded on Thursday morning, with the blue-chip CS1300 index rising 1.20%.

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