China’s securities regulator vowed to prevent abnormal market fluctuations, after Chinese stocks plunged to five-year lows, but announced no specific measures.
The watchdog also said it will crack down on ill-intended short selling, attract more investment by long-term capital, and earnestly listen to investors’ voices.
China’s blue-chip CSI300 Index tumbled nearly 5% last week to the lowest since early 2019, amid signs of panic selling and forced liquidation of leveraged trades.
The market sell-off led many Chinese investors to vent their frustration and anger via social media, including a blog account of the US Embassy in Beijing.
The China Securities Regulatory Commission (CSRC) said in a statement on Sunday it will step up implementing market stabilisation measures, “steady expectations and confidence, and adamantly ward off abnormal market fluctuations.”
The CSRC also vowed to crack down on misbehaviours such as market manipulation, vicious short selling, insider trading and fraudulent issuance of shares.
In addition, the CSRC said it will “listen carefully to the voices of investors, and respond to their concerns in a timely matter.”
The CSRC has previously announced a series of measures to support a languishing stock market — including restrictions on share sales by company shareholders, curbs on short selling and slower pace of listings — but has so far failed to stem market slides. – Reuters
