China ‘promptly responds’ to boost market sentiment as investor doubts grow over economic outlook
- Securities regulator met to discuss ‘sensitive issues’ and said it must respond to market concerns
- Increasing gloom about the country’s economic prospects after the Shanghai lockdown have hit stock markets and seen the value of the yuan drop
China has introduced new measures to shore up market sentiment as overseas investors become increasingly suspicious about the country’s handling of multiple headwinds.
The Financial Development and Stability Committee (FDSC), headed by Vice-Premier Liu He, held a special session on Friday morning to deliver a message from the country’s top leadership, according to a three-sentence statement released by the China Securities Regulatory Commission that did not provide further details.
Instead, the securities regulator said it had analysed “sensitive issues” in its own meeting the same day and had studied countermeasures and reserve policies.
“We must promptly respond to market concerns, guide their expectations, improve their potential and resilience to promote the steady operation of the capital market,” it said.
In a meeting on March 16, Liu pledged to “actively release policies favourable to markets” and encouraged long-term institutional investors to increase their shareholdings.