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China's economic recovery
EconomyChina Economy

Chinese Vice-Premier Liu He vows support for economic growth, capital markets amid mounting headwinds

  • China will stabilise markets and take ‘substantial measures’ to shore up first-quarter economic growth, vice-premier says
  • Stocks in China and Hong Kong rallied on Wednesday following Liu’s comments, with the CSI 300 Index jumping more than 4 per cent

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Vice-Premier Liu He has promised “policies favourable to markets” and the economy. Photo: Bloomberg
Frank TangandOrange Wang
China will roll out support measures to bolster its capital markets and steady economic growth following a massive stock sell-off over the past two weeks, driven by concern over coronavirus outbreaks, regulatory action and Russia’s invasion of Ukraine.
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The government will “actively release policies favourable to markets” and make sure any regulation that could have “a significant impact on capital markets” is coordinated with financial management departments in advance, the Xinhua news agency quoted Vice-Premier Liu He as saying at a meeting of the Financial Stability and Development Committee under the State Council.

Stocks in China and Hong Kong rallied on Wednesday following Liu’s comments. China’s CSI 300 Index jumped more than 4 per cent, while the Hang Seng Index closed 9.09 per cent up. The Hang Seng Tech Index soared more than 22 per cent.

Liu encouraged long-term institutional investors to increase their shareholdings, while promising to closely communicate with the Hong Kong regulator to maintain stability in the city’s financial market.

01:25

China aims for modest 5.5% GDP growth in 2022, citing economic pressures

China aims for modest 5.5% GDP growth in 2022, citing economic pressures

The government will also take “substantial measures” to shore up the first-quarter economic growth, Liu added.

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