China, Hong Kong Stocks Rebound But Analyst Says Government Intervention Will Only Have Short-Term Effect
China’s stock market rebounded on the afternoon of Oct. 25, with its A-share index continuing the upward trend on Oct. 26 after plunging on Oct. 24. However, a financial analyst believes that the stock market recovery is a result of government intervention to appease investors, which will only have a short-term effect.
China’s A-share stock market experienced a “Black Monday” on Oct. 24. At the close of the day, the three major indices of the Chinese stock market had fallen by more than 2 percent. The Shanghai Stock Exchange Index fell 2.02 percent to close at 2,977.56 points; the Shenzhen Stock Exchange Index fell 2.05 percent to close at 10,694.61 points; and the Growth Enterprise Market Index fell 2.43 percent to close at 2,336.84 points….