Despite Chinese companies committing over a billion dollars to share buybacks, these efforts have failed to restore confidence in the struggling market, as foreign investors continue to sell off Chinese stocks due to concerns over the property market and other factors.
Profits at China's industrial firms fell 6.7% in July, marking the seventh consecutive month of decline, as weak demand continues to hinder the country's post-pandemic recovery.
China Evergrande Group, the world's most-indebted property developer, reported a narrower net loss for the first half of the year due to increased revenue, but it is still facing a crisis in China's property sector characterized by debt defaults and shattered consumer confidence in the country's economy.
China Evergrande Group, the heavily indebted real estate developer, is set to resume trading on Monday after a 17-month suspension, following a reported loss of $4.5 billion in the first half of the year.
Shares in Chinese property giant Evergrande collapsed as they resumed trading in Hong Kong after 17 months, while Asian markets advanced following Federal Reserve chief Jerome Powell's cautious approach to rate hikes and China's decision to cut the duty on trades.
China's government implemented various measures to boost its stock market, including a cut in stamp duty and restrictions on selling shares, but the impact has been limited as the CDI 300 index closed up just 1.2% after initially opening higher, and troubled property developer Evergrande experienced an 87% drop in stock value; foreign investors are pulling their money out of China and want to see more significant policy measures from the government.
Shares of Chinese property developer Evergrande surged as much as 82% on Wednesday, leading gains on the Hang Seng Index, following reports of successful bond coupon payments by Country Garden, signaling a potential recovery in the country's property sector.
Asian stocks fell as trade data indicated weakness in the Chinese economy and regional technology shares were hit by the possibility of more U.S. restrictions on China after a supposed Chinese chip breakthrough.
Apple shares fell over 2.6% as China plans to extend a ban on iPhone use to state-owned corporations, while Dutch Bros dropped 6% after announcing a public offering of $300 million in shares, and Dave & Buster's shares fell over 3% due to weaker-than-expected earnings.
Asian shares fell and the dollar's rally stalled as the greenback weakened against most major currencies; concerns over Apple's iPhone sales in China and the expansion of a ban on iPhones in sensitive departments in China to government-backed agencies and state companies also weighed on sentiment.
The Hong Kong-listed shares of Alibaba Group fell over 4% after the surprise departure of former CEO Daniel Zhang from the company's cloud computing business.
Shares of Alphabet Inc. Cl A fell 0.51% as the stock market experienced a dismal trading session, although it outperformed some of its competitors.
Shares in crisis-hit China Evergrande have plunged by up to a quarter after the apparent detention of staff by police, reigniting concerns about the state of the company and China's wider property sector.
