China takes action to reassure global banks and investors after market meltdown

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China has moved to allay investor concerns over crackdowns on listed companies, with a prominent regulator having privately told global financial firms that Beijing will examine the impact of the market before introducing future policies, people familiar with the matter said.

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, spoke Wednesday evening with representatives of global banks, including Goldman Sachs Group Inc. and UBS Group AG, as well as some investment firms, according to the reports. sources. Yi Huiman, chairman of the securities regulator, was also present at the closed-door meeting in Beijing, they added.

After the meeting, and following a series of bullish articles in state media, Chinese tech stocks listed in New York and Hong Kong surged, helping to pull broader markets higher and recover. some of their recent steep declines.

Mr. Fang told those in attendance that the recent crackdown imposed by China on companies engaged in private tutoring, online financial services and other sectors is aimed at solving the problems of these industries and helping them to survive. develop appropriately, people said. He also said that China does not intend to disassociate itself from world markets, and in particular from the United States, the people added.

The CSRC did not immediately respond to a request for comment sent by fax. Goldman and UBS declined to comment.

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