(Yicai Global) March 16 -- Shares of Chinese healthcare providers such as Aier Eye Hospital and Topchoice Medical gained ground today amid a wider market rally. They plunged yesterday after a rumor circulated online that China’s health authorities are questioning listed hospitals and clinics about the funds they raised going public.

Air Eye [SHE: 300015] closed up 1.2 percent at CNY27.27 (USD4.30) today, after earlier falling as much as 5.9 percent. After sinking 6.5 percent in the morning trading session, Topchoice [SHA: 600763] ended 0.4 percent up at CNY122.88 (USD19.37). The stocks slumped 11.4 percent and 10 percent, respectively, yesterday.

According to a document doing the rounds on the internet, the National Health Commission is asking medical institutions to provide information about the funds they raised when listing, whether they are in line with the health sector’s development, if they can have a negative impact on the sector, or whether they can lead to the risk of disorderly expansion of capital in the field.

The NHC has not yet commented or put out a public statement, but an official at a private medical association told Yicai Global that he received the document from an authoritative source. The person said he learned from government departments that the document is just routine annual research conducted by a department of the NHC.

Chinese Vice Premier Liu He said today at a meeting of the Financial Stability and Development Committee under the State Council that the country will roll out measures to support the capital markets and stabilize economic growth, after a great sell-off of stocks in the past two weeks due to a number of factors including a resurgence of Covid-19 in China and the Russia-Ukraine conflict.

The Shanghai Composite Index and the Shenzhen Component Index today closed up 4.5 percent and 3.6 percent, respectively.

Editor: Futura Costaglione