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CSRC chairman vows ‘stable market’ as A-share market rebounds on concerted buying

The CSRC pledges to stabilise the market after meeting with investor representatives to talk up stocks

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People cross the street beneath a large screen showing the latest stock exchange data in Shanghai on April 8. Photo: EPA
Zhang Shidongin Shanghai

China has doubled down on efforts to stabilise the country’s US$15 trillion stock market, with its securities regulator pledging to arrest equity declines and state entities conducting concerted buying, after the unwinding of the AI trade roiled global markets and sent a benchmark of technology stocks tumbling in Shanghai.

The China Securities Regulatory Commission (CSRC) convened a meeting with eight investor representatives on Monday to gather feedback on ensuring capital market stability, according to a statement on the regulator’s website.

Meanwhile, coordinated state buying was under way, as two central government-backed conglomerates said on Sunday night that they had spent about 60 billion yuan (US$8.86 billion) buying yuan-denominated stocks to stem the decline, and a slew of listed companies unveiled plans for buy-backs or increases of stock holdings.

The speedy government intervention underscored Beijing’s endorsement of the nation’s yuan-denominated onshore stock market that is now playing a critical role in aiding China’s economic transition through technological innovation and growth. The tech-centric Star Market, under the Shanghai Stock Exchange, now hosts a flurry of leading chipmakers with the potential to challenge US counterparts, such as Nvidia, in the intensifying US-China rivalry from trade to AI build-outs.

“The CSRC will adhere to coordinated measures to prevent the risks on the capital market, strengthen the regulatory oversight and promote the high-quality development to strive for the stable operation of the market,” said Wu Qing, chairman of the CSRC. The watchdog would “unwaveringly keep a transparent, fair and open market order to let investors share the benefits of economic growth and the high-quality growth of capital market.”

Wu made the comment in Beijing on Monday in the meeting with attendees, who called for more measures to guide the entry of long-term capital, promote larger dividend payouts from listed companies and regulate both quantitative trading and AI adoption, according to the CSRC statement.

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