China’s securities regulator pledged more measures to support capital markets and said it recently met with investors including BlackRock Inc. and Bridgewater Associates to hear their suggestions.
(Bloomberg) — China’s securities regulator pledged more measures to support capital markets and said it recently met with investors including BlackRock Inc. and Bridgewater Associates to hear their suggestions.
Three meetings were held in recent days between officials from the China Securities Regulatory Commission (CSRC), including its head Yi Huiman, and representatives from foreign and domestic investment firms, as well as economists and academics.
The CSRC will study the opinions and suggestions offered by participants, and introduce “pragmatic and effective” policies to maintain the “stable and healthy development” of capital markets, it said in a statement on its website.
China been making more aggressive moves to boost investor sentiment since late July, when the ruling Communist party’s politburo called for measures to enliven capital markets. Regulators have cut the stamp duty on stock trades for the first time since 2008 and pledged to curtail the pace of initial share sales to shore up the market.
But the results have been mixed. The CSI 300 has erased much of the gain from late August as Chinese economic data showed an ongoing downturn in the property market as well as falling exports.
The property market will see a “steady recovery” following recent supportive policies such as the easing of mortgage rules, the regulator said.
Other attendees at the meetings included Singapore’s sovereign wealth fund Temasek, and Gao Shanwen, chief economist at Essence Securities, the CSRC said. Several Chinese mainland-based funds and capital managers also attended.
The report on the meetings contained few specific policy promises, but referenced plans to optimize regulatory arrangements for IPOs, reduce margin ratios, relax the registration conditions for index funds, and reduce minimum settlement deposit payment ratios.
The CSRC also emphasized the need to guard against risks and “firmly prevent” large fluctuations in the market. Companies need to win investors’ confidence with long-term and stable returns, it added.
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