A view of the Huangpu River in Shanghai, on May 14. [Photo/Xinhua]
While short-term volatility may continue, the recent sell-off in China's A-share market has created potential for a medium-term rebound supported by ramped-up policy support, more reasonable valuations and improved corporate earnings, analysts said.
They made the remarks as China's securities regulator reiterated its commitment to shoring up market confidence at a symposium on Monday while implying a focus on the oversight of quantitative trading, underscoring a growing emphasis on protecting retail investors and improving their return prospects.
More policy efforts — including further share purchases by State-owned investment companies, additional central bank liquidity support, potential measures to optimize quantitative trading regulation, and stepped-up macroeconomic stimulus moves — may be considered to consolidate the foundation of market rebound, they added.
On Monday, China's A-share market recovered from a slump on Friday, when the Shanghai Composite Index fell 3.05 percent to close below the 3,800-point mark as growth-oriented stocks plummeted amid a global tech stock correction led by the South Korean bourse.
