China’s leading securities regulator to punish market manipulators


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Wu Qing, Chairman of the China Securities Regulatory Commission, responds to a concern at an interview throughout the 2nd session of the 14 th National People’s Congress (NPC) in Beijing on March 6,2024 (Photo by WANG Zhao/ AFP) (Photo by WANG ZHAO/AFP by means of Getty Images)

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BEIJING– China’s leading securities regulator promised to “strictly” punish market manipulators, while specifying that safeguarding little financiers was a “core task.”

Ensuring fairness, particularly in a market controlled by smaller sized financiers, is the regulator’s core job, stated Wu Qing, chairman of the China Securities Regulatory Commission, on Wednesday at a joint interview together with the nation’s other leading financial and monetary organizers.

Wu laid out steps considered needed to enhance the quality of noted business and increase rois. They consist of: motivating noted business to enhance stability, timeliness and predictability of dividend payments, more stringent delisting guidelines, and broadening assessments of noted business.

China's central bank governor said there was room to further cut banks' reserve requirements, and pledged to utilize monetary policy to prop up consumer prices.

China’s reserve bank guv states there’s space to cut banks’ reserve requirements

He stated that openness, fairness and justice ought to be the most crucial concepts in the capital market.

“China’s market is the second largest in the world, but it’s not as strong,” Wu stated, including the current market volatility exposed ingrained problems.

He stated financiers require to be much better safeguarded, so they can have self-confidence and trust. It would likewise bring in longer term financiers, he included.

At the exact same interview, Pan Gongsheng, guv of the People’s Bank of China, likewise vowed assistance for abroad listings for premium Chinese business.

Struggling markets

Following current severe market volatility, Beijing has actually stepped up steps to support its beleaguered stock exchange in the last couple of weeks.

These consist of tightening up regulative limitations on its quickly flourishing quant trading market and suppressing brief selling, altering its leading securities regulator and share purchases by a “national team.”

The consultation of markets veteran Wu as chairman of the China Securities Regulatory Commission in early February preceded the curbs on quant traders.

A securities organization hall in Fuyang, China, in December 2023.

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Wu is referred to as “Broker Butcher” for his crackdown on traders in his previous functions as acting vice mayor of China’s significant monetary center Shanghai and chairman of the Shanghai Stock Exchange.

The Hang Seng Index, a criteria of Hong Kong listings that consists of lots of overseas Chinese stocks, is coming off four-straight yearly losses, while the CSI300 index of the biggest blue chips noted in the mainland has actually reserved losses for 3 straight years.

With the mainland residential or commercial property market in the doldrums and the stock exchange in freefall, desperate mainland financiers had actually looked in other places for much better returns in spite of rigid capital controls.

At in 2015’s parliamentary conference, Beijing had actually revealed an overhaul of financing and tech guideline by developing party-led commissions to manage the 2 sectors as Xi Jinping got an unmatched 3rd term as president.