China’s securities regulator pledges action to shore up region’s worst-performing stock market, says rout is an ‘overreaction’

Name: Residents locked inside homes with wires and bolts due to Covid-19
Uploaded: 2022-05-11T04:59:42.000Z
Duration: 1 min 27 s
Description: Residents locked inside homes with wires and bolts due to Covid-19

Measures include encouraging more tech companies to go public and adding more stocks to the exchange link with Hong Kong

Vice-chairman of the China Securities Regulatory Commission seeks to soothe shattered nerves of investors in interview with Xinhua

Reading Time:2 minutes

Why you can trust SCMP

China’s securities watchdog pledged a variety of measures to shore up confidence in the region’s worst-performing stock market. Photo: Reuters

Zhang Shidong

Published: 12:59pm, 11 May 2022Updated: 3:27pm, 11 May 2022

China’s securities watchdog has joined a chorus of voices attempting to soothe the frayed nerves of investors, pledging a variety of measures to shore up confidence in the region’s worst-performing stock market.

The nation’s continuing economic recovery together with the resumption of logistic and supply chains will outweigh a confluence of headwinds including the pandemic and the tightening of monetary policy in the US, said Wang Jianjun, vice-chairman of the China Securities Regulatory Commission (CSRC), in an interview with the Xinhua News Agency on Tuesday. The article, published in a question and answer format, was uploaded to the CSRC website.

He described the sell-off that has wiped billions off the value of Chinese equities as an “overreaction” to negative headlines.

Wang’s reassuring words helped push mainland China’s benchmark stock index higher on Wednesday. The Shanghai Composite Index finished the day 0.8 per cent higher, completing a third straight day of gains.

The CSRC said it will roll out of a raft of measures to stabilise the market. These will include encouraging more technology platform companies to go public either domestically or overseas, increasing the participation of institutional investors and expanding the investible universe of the exchange link with Hong Kong, according to Wang.

01:27

Residents locked inside homes with wires and bolts due to Covid-19

“The impact of all these risks on the A-share market is controllable,” he said. “The size of margin trading is limited … and the mutual-fund industry has still seen net subscription rather than redemption. We believe that the short-term market swing will not change the uptrend of the capital market.”

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x