Chinese stock regulator urges listed firms to revamp assets, boost market value
CSRC details policies including fast-track approval for M&A activity by large firms as it looks to burnish the stock market’s appeal
CSRC chairman Wu Qing first disclosed the policies at a joint press conference by the nation’s financial regulators hours earlier, in which the central bank also unveiled 800 billion yuan (US$114 billion) in new funding for stock purchases and pledged to cut interest and mortgage rates.
The fresh package of stimulus measures came after China’s benchmark stock index dropped to its lowest level in more than five years this month and all key economic data in August fell short of expectations. A half-point interest-rate cut by the Federal Reserve last week has given China more leeway to escalate its policy loosening without weakening the yuan or triggering capital outflows.
“The announcements are positive for the broader equity market given potential additional fund inflows, greater levels of buy-backs and, in the long run, more corporate governance enhancement,” said James Wang, head of China strategy at UBS Group in Hong Kong.
The CSI 300 Index rose 1.5 per cent on Wednesday, on top of a 4.3 per cent surge a day earlier.
