China's top security regulator seeks to ease volatility fears
Beijing
CHINA'S top security regulator sought to ease concerns about burgeoning stock-market volatility, after Friday's wild price swings capped the worst three-week rout for mainland equities in more than a year.
The recent gyrations were due to "external factors", but these are not the dominant elements in China's stock-market development, said Yi Huiman, chairman of the China Securities Regulatory Commission, in a speech in Beijing on Saturday. Economic fundamentals and the quality of listed companies should remain the main long-term drivers for share prices, he said.
Mr Yi's remarks are the first comments on stocks from a top-level official after the Shanghai Composite ended last week down by 4.5 per cent, even after buying from state-backed funds on Friday helped drive the index to its steepest one-day gain since March. Renewed trade tensions with the US and signs that the economic recovery remains fragile have unnerved investors.
Even after a 10 per cent slump over the past three weeks, China has the world's best-performing major stock market this year.
Mr Yi said on Saturday that the commission is looking for ways to delist some shares, because "zombie" and "empty-shell" companies need to be resolutely removed from the market. BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Google, US clash over search advertising as trial winds down
Apple rallies most in 18 months on upbeat forecast, buyback
US: Wall St opens sharply higher on soft jobs data
HSBC has no plans to dispose of further businesses, chairman says
Glencore Group nears deal for Shell’s Singapore oil refinery
Chinese share of French EV market slumps after incentives curbed