U.S. stocks closed down nearly 1,000 points on Friday (29th), but stocks in the U.S. and China bucked the trend and rose more than 4%, because the Politburo of the Communist Party of China made a clear request, instructing government officials to “prevent the epidemic and stabilize the economy.” “.
The Nasdaq China Golden Dragon Index closed up 4.46% on Friday, Alibaba (BABA-US) and JD. Toto (PDD-US) rose more than 13%. In contrast, the U.S. stock Dow Jones index fell 2.77% or 939.18 points, and the S&P 500 index also fell 3.63%.
Not only in U.S. and Chinese stocks, the A-share Shanghai Composite Index also rose 2.41% on Friday, regaining the 3,000-point mark, and Hong Kong’s Hang Seng Index rose more than 4%, regaining the 21,000-point mark.
The reason why A-shares, Hong Kong stocks and Chinese stocks in the United States “raised” is that Xi Jinping, General Secretary of the Communist Party of China, presided over a meeting of the Political Bureau of the Communist Party of China Central Committee on Friday to analyze the economic situation in the first quarter and deploy the next economic work.
Xi Jinping instructed, “The epidemic must be prevented, the economy must be stabilized, and development must be safe.” It is necessary to strengthen the adjustment force of macro policies to minimize the impact of the epidemic on economic and social development, so as to achieve the expected goals of economic and social development throughout the year, and to allow the economy operate within a reasonable range.
Xi Jinping said that it is necessary to respond to market concerns in a timely manner, steadily promote the reform of the stock issuance registration system, actively introduce long-term investors, and promote the smooth operation of the capital market; it is necessary to promote the healthy development of the platform economy, complete the special reform of the platform economy, and promote normalized supervision.
Tian Lihui, dean of the Institute of Financial Development of Nankai University, said that the speech of the Political Bureau of the Central Committee is of great significance to the smooth operation of the capital market. It released key bullish news and also released a long-term bullish signal for China’s capital market.
Ren Tao, a distinguished researcher at the National Finance and Development Laboratory, believes that this meeting fully released the signal of “stabilizing the capital market”. Recently, the Chinese stock market has fallen sharply. This is mainly due to weak investor expectations and low confidence. In the future, Beijing will be committed to continuously introducing long-term funds, improving the quality of listed companies, and promoting regulatory transformation to boost market confidence.