China’s state media are on a mission to talk up the battered stock market and reassure rattled investors after a rout on Monday that erased more than $570 billion from Chinese stocks listed at home and abroad, reported the South China Morning Post.
The panic sell-off provides an opportunity to “buy on dips” – meaning to invest in stocks that have plummeted in price – as there are no fundamental changes in the onshore market, according to an article published by the Securities Times, which is run by the People’s Daily.
The Shanghai Securities News, which is owned by the official Xinhua News Agency, ran an article saying there is no systemic risk and that stock valuations are expected to rebound. The Securities Daily cited analysts as saying the turbulence was simply a result of funds rotating in and out of sectors, and reassured readers that the big picture of the economy and liquidity remained intact.
Their campaign of reassurance aimed to calm the frayed nerves of the nation’s 189 million stock traders that were caught off guard by Monday’s rout.