The head of China’s securities regulator said he would make stability of capital market operations a top priority amid growing concerns over the economic outlook and stock fluctuations.
The world’s second-largest economy slowed dramatically in the second quarter, due to widespread Covid-19 lockdowns and a slumping real estate sector.
The benchmark CSI 300 index fell for four straight weeks last month as foreign investors sold 21 billion yuan ($3.1 billion) of Chinese stocks through the stock connect scheme, halting three straight 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 the China Securities Regulatory Commission in Qiushi, an official newspaper of the Chinese Communist Party published on Monday. -fair.
However, “we must always adhere to the bottom line mentality and resolutely prevent ‘market failures’ from causing abnormal fluctuations”.
Yi said that capital markets are a “thermometer” of a country’s economy, reflecting expectations and confidence, which makes it important to keep its development stable and healthy.
He added that the regulator will strengthen coordination with macroeconomic management departments and industry authorities to maintain consistent expectations and address real estate developers’ risks.
Source: CNN Brasil
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