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CSRC, China’s securities watchdog, pledges to prevent ‘abnormal fluctuations’ in embattled stock market
- Yi Huiman, chairman of the China Securities Regulatory Commission, stresses the need for ‘bottom-line thinking’
- The Hang Seng Index recorded its biggest monthly slump in a year in July
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China’s securities watchdog will work to stabilise the capital markets and prevent “abnormal fluctuations” as a period of high volatility continues, said its chairman.
Yi Huiman, chairman of the China Securities Regulatory Commission, stressed the importance of “bottom-line thinking” in an article published on Monday in Qiushi, the Communist Party’s main journal on political theory.
“It’s a rule that the market has ups and downs, and the government should not intervene in normal fluctuations,” Yi said. “But not to intervene doesn’t mean letting it move in any direction, [we] must always insist on a bottom-line mentality, and firmly avoid abnormal fluctuations triggered by market malfunction.”
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His comments came as the country’s stock markets remain in a downward cycle.
The Hang Seng Index fell an 11-week low during trading on Monday, hammered by the increasing risk of Chinese companies being delisted in the US. The benchmark recorded the worst monthly performance in a year in July, with a 7.8 per cent drop.
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China’s economy grew by just 0.4 per cent in the second quarter, compared with 4.8 per cent in the first three months.
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