Nasdaq Golden Dragon China Index Rises 0.5% as Key Stocks Surge, Regulatory Support Boosts Market

On Tuesday, the Nasdaq Golden Dragon China Index saw a modest increase of 0.5%, with a majority of popular Chinese stocks listed in the U.S. experiencing gains. Leading the charge was Yuchai International, which surged by over 7%, followed by Hesaitech with a rise of over 6%, and JD.com increasing by over 4%. Other notable performers included Manbang Group and NetEase, both of which saw gains exceeding 2%.

The market's positive trajectory was driven by several significant developments. The "China Stabilization Fund" made substantial moves, with key entities such as Central Huijin, China Chengtong, and China National New Materials Group announcing increased holdings. This move was part of a broader effort to stabilize the market, which also saw over 30 listed companies initiating share buybacks, with the total amount exceeding 15 billion yuan. Positive first-quarter earnings reports further bolstered market confidence, with Guotai Junan Securities projecting a year-over-year increase in net profit of 350% to 400%.

Regulatory support also played a crucial role in boosting market sentiment. The People's Bank of China and the National Financial Supervision and Administration Commission both expressed positive stances, signaling their commitment to supporting the market. Long-term investors, including China Life Insurance, reiterated their optimism about the future of China's capital markets. Analysts from various research firms also maintained a bullish outlook on the Chinese market, citing favorable investment opportunities.

The overall market sentiment was further enhanced by the rebound in both Hong Kong and mainland China stock markets, which also experienced gains on the same day. This collective positive momentum underscored the resilience and potential of the Chinese stock market, despite recent challenges. The combination of regulatory support, positive earnings reports, and increased holdings by key entities provided a strong foundation for continued market growth. The market's response to these developments highlighted the importance of stability and long-term investment in driving market performance.