China stocks opened lower on Thursday, as the rout in global markets accelerates amid global economic growth and commodity price fears.
But the Hong Kong market bounced off Wednesday’s 3-1/2 year low, as the city’s currency strengthened against the dollar on Thursday morning, while the offshore yuan, also known as CNH, also appeared to have stabilized.
“Recently, buying in late afternoon trading session hints at the ‘national team’ at work, while the PBOC is determined to squeeze the CNH shorts,” Hong Hao, managing director of research at BOCOM International wrote on Thursday.
“In an environment of deteriorating fundamentals, interventions in various asset classes on the mainland have prevented market prices from adjusting to China’s economic reality.”
China’s bluechip CSI300 index fell 0.9 percent to 3,146.90 points at 1:51 GMT, while the Shanghai Composite Index lost 1.1 percent to 2,943.45 points.
The Hang Seng index in Hong Kong was up 1.5 percent, to 19,176.96 points.