Govt Props Shanghai Comp Up 0.5%, ChiNext Down 5%

Bloomberg: China Said to Intervene in Stocks Ahead of Annual Policy Meeting

China intervened to support its stock market on Friday, helping the benchmark index cap its best weekly gain of 2016 before policy makers meet to approve a five-year road map for the economy, according to two people with direct knowledge of the situation.

State-backed funds bought primarily bank shares, while some local branches of the securities regulator asked listed companies, mutual funds and brokerages to stabilize the market during the National People’s Congress and the Chinese People’s Political Consultative Conference, said the people, who asked not to be named because the matter isn’t public.

Propping up the market doesn't work and neither does good earnings news reverse the market when the mood is negative.

China Daily: ChiNext profit growth hits five-year high

The average net profit of firms listed on the ChiNext Index, China's NASDAQ-style board for start-ups, grew at its highest speed in five years in 2015.

Almost all ChiNext-listed companies unveiled their performance sheets by the end of February, reported the official Securities Times on Wednesday.

The 500-some ChiNext-listed companies raked in an average net profit of 125 million yuan ($19.1 million) last year, up 27.8 percent year on year. Their revenue on average also rose at a 5-year high of 29.4 percent year on year.