Shanghai based BNP Partners says that following unprecedented government intervention to shore up prices, mainland Chinese stock markets have stopped falling and staged strong rallies that, for now, appear to have salvaged Beijing’s reputation.

A raft of measures introduced over several tumultuous market sessions including a ban on short-selling, a ban on new IPOs, and as much as 40% of listed companies suspending trading in their shares, has seen both the Shanghai and Shenzhen Composites make up some of the ground lost in some of the most turbulent conditions.

“Interventions of this nature aren’t unprecedented; we saw bans on short-selling of European bank shares during the global financial crisis so any criticism leveled at the Chinese authorities’ actions from foreign investors need to be taken with a pinch of salt,” said Cole Denning, Chief Investment Strategist at BNP Partners

Some commentators had described the measures as acts of panic which, in turn, fostered panicked reactions from investors and were seen as exacerbating the selling but as Denning explained, Beijing needed to act.

“Despite the efforts of the Communist Party to portray itself as all-powerful, China is finely-balanced politically. So-called “Mom & Pop” investors were encouraged to participate in the equity boom but entered after valuations had become excessive. Losing large amounts of money in days could have sparked a backlash among retail investors and potentially led to dissent and social unrest.”

BNP Partners says it believes the selloff is largely over and has tentatively begun acquiring stocks in blue chips on behalf of clients.

About BNP Partners:
At BNP Partners, they define effective wealth management as an overall strategy that seamlessly integrates their clients’ personal ROI (return-on-investment) aspirations with their investment management prowess.

Whilst today’s markets can often demonstrate the type of characteristics that have served to hamper the efforts of many traditional investment methodologies to secure the returns they once did, BNP Partners continue to secure exceptional returns for their esteemed clients utilizing a meticulously applied combination of those same traditional methods whilst diligently complementing them with new, pioneering techniques.