The Shanghai bourse hit more than two-year low to 2,750 on Tuesday but closed at 2,786.89 points. Four giant securities journals commented that investors should be rational in their response to risk.
Newspaper Securities Daily called the slump in the Chinese mainland stocks an overreaction, noting that investors should have confidence in China's domestic market and that the current macroeconomic situation is stable.
China Securities Journal said that the risks of share-backed loans have been exaggerated by market insiders, and investors should take a rational look at the risk of liquidation. The Shanghai Securities News pointed out that more signs of bottoming out appeared in the A-share market, indicating a looming market turning point.
The Shenzhen Component Index closed 0.45 percent higher at 9221.54 points.
The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 1.18 percent to close at 1607.12 points.
For companies, it's plain sailing it seems. According to Securities Times, listed firms in China reported higher profits in the first half of 2018. About 1,200 companies have released their interim result forecasts, of which more than 700 expected higher profits.
High-end industries including chemical, machinery, medicine, and biological sectors are expected to double their profits during the first half of year. A group of industries affected by the supply side reform and other related policies such as the improvement of environmental protection requirements is also on the rebound.
Analysts said that major listed companies in the A-share market sustained relatively high profitability in the first half, and attributed the better performance to expansionary businesses, price rises, and industry restructuring. The stock market is expected to rebound in the next half of the year. Meanwhile, the consumption upgrading and innovation of science and technology will play a pivotal role in the market.
