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China’s securities regulator head says stabilising market is top priority

China’s securities regulator head says stabilising market is top priority

A Chinese national flag flutters outside the China Securities Regulatory Commission (CSRC) building on the Financial Street in Beijing, China July 9, 2021. REUTERS/Tingshu Wang

SHANGHAI : China's securities regulator chief said they will make stable capital market operations a top priority amid deepening worries about the economic outlook and fluctuations in stocks.

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

The benchmark CSI 300 Index dropped for four straight weeks last month, while foreign investors sold 21 billion yuan ($3.1 billion) in Chinese stocks via the stock connect scheme, snapping three consecutive months of inflows.

"It is a rule that the stock market has ups and downs, and the government should not intervene in normal fluctuations," wrote Yi Huiman, chairman of China Securities Regulatory Commission (CSRC) in Qiushi, an official journal of the Chinese Communist Party, published on Monday.

"However, non-intervention is not laissez-faire - we must always adhere to the bottom-line mentality and resolutely prevent 'market failure' from causing abnormal fluctuations."

Yi said capital markets were a "barometer" of a country's economy, reflecting expectations and confidence, which made maintaining their stable and healthy development important.

He added the regulator would strengthen coordination with macroeconomic management departments and industry authorities to maintain consistent policy expectations and resolve property developers' risks.

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

The CSRC will accelerate the implementation of rules for offshore listings and support the offshore listing of various types of enterprises, Yi added.

Source: Reuters
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