Date
24 July 2017
Mainland investors expect the China Securities Regulatory Commission, chaired by Xiao Gang, will launch new measures to support the stock market. Photo: Shyxgf.com
Mainland investors expect the China Securities Regulatory Commission, chaired by Xiao Gang, will launch new measures to support the stock market. Photo: Shyxgf.com

Securities regulator seeks cures for market slump

The China Securities Regulatory Commission is said to have sought suggestions from various institutions on how to arrest the stock market plunge, the Hong Kong Economic Journal reported on Friday.

The government believes it still has tools in the policy basket to shore up investor confidence, the newspaper said, citing a Sina Finance report.

It was not clear which institutions were consulted by the securities watchdog and what suggestions were offered.

Academics and market observers have urged the central bank to join hands with other regulators in the banking, securities and insurance sectors to come up with ways to cope with the situation.

They said the experience of Hong Kong during 1998 Asian Financial Crisis could provide some lessons.

Among the measures that could be adopted include raising the deposit requirement for index futures and implementing “T+1″ clearing regime.

A government fund worth 500 billion to 1 trillion yuan (US$80.6-161.2 billion) is also being recommended to buy stocks in certain strategic industries, the newspaper said.

The CSRC has earlier allowed brokerages to set their individual benchmarks for investors to close their positions, while permitting those with less than 500,000 yuan worth of securities to seek refinancing and extending the maturity of contracts for qualified margin financing and short-selling.

Translation by Vey Wong

[Chinese version中文版]

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