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The Chinese stock market reversed an early loss Monday and finished up nearly 2% even as other Asian stock markets stumbled.
China's Shanghai Composite Index rose 1.9% to 3,156.54. The mainland's key benchmark, the CSI1300, climbed 1.75% to 3,308.25. Small caps had an even better day. The Shenzhen Composite soared 3.56% to 1,818.41, and the startup board ChiNet surged 4.83% to 3,079.60.
But it was a different story outside of China. Australian equites shed 2.02%. Korean markets lost 2%. Hong Kong's main market fell 1%, and Malaysian stocks slipped 1.8%.
Fueling Chinese stock markets Monday were soothing comments from Chinese Vice Minister Shi Yaobin. Recent volatility and a 40% slump in Chinese stock markets were a short-term issue, he said. The country's economy, he added, could maintain healthy growth going forward.
The Vice Minister's comments mimic those of Yang Jiechi, one of China's five state councilors.
In a Sept. 9 interview in Beijing, Yang said concerns about a slowdown in China and the recent swoon in Chinese stock markets are overblown. China's "handsome" growth rate of about 7%, he continued, will remain a catalyst for global growth.
"Some movements on the stock exchange in China should not equal the whole picture of the Chinese economy," Yang said. "We believe that in the long term there is steadiness of the market, and besides if you look at the fundamentals of the Chinese economy, they are quite sound."
Yang also spoke about the Chinese government's attempts to stabilize the markets and how they have restored some order. But that doesn't mean the Chinese stock market is out of the woods yet…
What's Ailing the Chinese Stock Market
"We let the market function in its own way," Yang said. "Of course, whatever the Chinese side has done is within the boundaries of reasonableness and if people look at the history of financial developments in all corners of the world, nothing that has happened in China should be a surprise to them."
According to Goldman Sachs estimates, China has shelled out a whopping 1.5 trillion yuan ($236 billion) in attempts to calm Chinese stock markets, which entered panic mode in July.
Other government efforts include $400 billion in stock purchases, a ban on selling by major shareholders, and short-selling bans.
And on Aug. 11, China's government altered the yuan's exchange rate mechanisms. The move caused the currency's biggest one-day drop in nearly two decades. It also ignited fears of a currency war and sent markets across the globe reeling.
Still, government officials in China stand ready to intervene again…
"We are determined to further open up the market and to carry out structural reform – to raise people's living standards and to let people have more money," Yang said.