New | Head of China's state-owned aerospace firm warns of 'hostile foreign investors'
Avic chairman says malicious short sellers trying to undermine country's reforms
The stock market may have steadied but the chairman of China's largest aerospace manufacturer warns against dropping the guard against "hostile foreign investors" bent on undermining the country's reforms and "overthrow the party".
Lin Zuoming, the chairman of Aviation Industry Corp of China (Avic), said the state-owned juggernaut had lined up billions of yuan to prop up its stock when the market went into a free fall, wiping out about US$3 trillion of market value in three weeks, according to an article published on its official WeChat account.
"The malicious short sellers who tried to knock down the A shares are not low-level investors," said Lin. "We must continue to make an all-out effort to fight against them. We won't withdraw our forces before an overwhelming triumph over them."
Avic was among the many companies that were asked by the China Securities Regulatory Commission to beef up their purchases of shares to help the market back on its feet.
The Shanghai Composite Index fell more than 31 per cent between June 15 and July 8 amid a selling spree. It has rebounded 13.8 per cent since.
Lin said Avic spent 338 million yuan in the three days from July 8 to buy A and H shares of its 20 subsidiaries, successfully putting a floor under the plummeting stocks.
Lin, who is also a member of the Communist Party's central committee, bought 2,000 shares of the companies himself.