Stabilizing markets is top priority, says China’s securities regulator chief

SHANGHAI (Reuters) – China’s securities regulator chief said he would give top priority to stable capital market operations amid deep concerns about the economic outlook and volatility in stocks.

The world’s second-largest economy slowed sharply in the second quarter, due to widespread COVID-19 lockdowns and a slowing property sector.

The benchmark CSI 300 index fell for four consecutive weeks last month, as foreign investors sold 21 billion yuan ($3.1 billion) in Chinese stocks through the Stock Connect scheme, breaking three consecutive months of inflows.

“It is a rule that the stock market fluctuates, and the government should not interfere with normal fluctuations,” said Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC), in QiXi, an official magazine of the Communist Party of China. written. Published on Monday.

“However, non-intervention is not laissez-faire – we must always adhere to a bottom-up mindset and prevent ‘market failures’ from creating abnormal volatility.”

Yi said the capital market is a “barometer” of the country’s economy, reflecting expectations and confidence, which have made it important to maintain their steady and healthy growth.

He said the regulator will strengthen coordination with macroeconomic management departments and industry officials to maintain policy requirements and address risks to property developers.

He also said that China has met the conditions to fully implement the registration-based IPO system and the regulator will ensure smooth implementation of this reform.

The CSRC will expedite the implementation of regulations for offshore listings and support offshore listing of various types of enterprises, Yi said.

(Reporting by Jason Xue and Brenda Goh; Editing by Sam Holmes)

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