China’s securities regulator has committed to implementing actions aimed at stabilizing the market, following a period of significant volatility that saw Chinese stocks hit a five-year low.
Without specifying particular interventions, the China Securities Regulatory Commission (CSRC) said in a statement on Sunday that it would “steady expectations and confidence, and adamantly ward off abnormal market fluctuations.”
This announcement comes in the wake of the CSI300 Index’s nearly 5% drop last week, marking its lowest point since early 2019, amidst widespread panic selling and the forced liquidation of leveraged positions.
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Despite previous measures aimed at supporting the faltering stock market, including restrictions on share sales by major stakeholders, limitations on short selling, and a reduction in the rate of new listings, the market has continued to face challenges.
The worsening rout has angered people so much that they are asking the US for help in the strangest of channels. CNN reported early Monday that a completely unrelated post from the US embassy on Friday on the Chinese-language social media app Weibo attracted over 160,000 comments asking the US government to “please help Chinese stock investors.” The post was about protecting wild giraffes in Africa.
By Monday, many of the comments appear to have already been scrubbed. Since last year, Chinese authorities have increased their efforts to shush criticism of the struggling economy. In August, they warned prominent local economists to avoid discussing negative trends such as deflation.
Information for this story was found via Reuters, CNN, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
