China’s securities regulator vows to maintain stability after market rout
The authority will prevent risks in the capital market, boost supervision and safeguard open, fair and just market order
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[BEIJING] China’s securities regulator chief chaired a meeting with investors on Monday (Jul 20) and vowed to make “all efforts” to maintain stable market operations, after a rout over the past two weeks roiled the stock market.
The China Securities Regulatory Commission will prevent risks in the capital market, step up supervision and resolutely safeguard open, fair and just market order, commission chairman Wu Qing was cited as saying at the meeting in Beijing, according to an official readout.
The meeting comes after a stock market rout that wiped out 10 trillion yuan (US$1.48 trillion) worth of China market capitalisation over the past two weeks.
Markets rebounded on Monday. The large-cap CSI300 Index and Shanghai Composite Index gained 1.53 per cent and 0.85 per cent respectively.
The tech-focused Star Composite Index, however, fell 2.28 per cent.
Wu also vowed to improve the transparency of listed companies and investor protection so that investors can better share the fruits of economic and capital market development, the readout said.
Investors at the meeting suggested stronger counter-cyclical adjustments and measures for guiding more long-term capital into the market, as well as harsher punishments for securities-related crimes, according to the readout.
A number of state-owned companies, including CRRC and SDIC Power, announced on Monday proposals such as shareholder stake increases, share buybacks and dividends for investors in a bid to firm up investor confidence.
Fund manager Bosera said on Monday that it would invest 50 million yuan in its own equity funds, citing confidence in the Chinese market’s long-term healthy and stable development.
Two of China’s state-backed investors said on Sunday that they had deployed some 60 billion yuan to buy stocks, and pledged to further increase securities purchases. REUTERS
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