China government tried on Wednesday to reassure nervous investors of its stability, car he promised to ride out policy steps favorable for son economy including its capital markets, struggling real real estate industry, internet companies and entrepreneurs who want to augment money abroad after regulatory repressions caused stock prices fall.
Regulators should issue marketfriendly policies to “energize economyofficials said at a Cabinet meeting chaired by Vice Premier Liu He, President Xi Jinping’s top economic adviser, according to the official Xinhua News Agency.
Liu said Beijing would roll out support for the Chinese economy and be careful with measures for capital markets.
The ruling Communist Party is trying to revive the economy growth which slipped to 4% in the final quarter of 2021, compared with the full yearthe expansion of of 8.1%. It was triggered by a collapse in housing construction and sales after Beijing launches crackdown on debt in real real estate that officials fear is dangerously high.
the economy also is under pressure from the anti-coronavirus measures which shut down South business center of Shenzhen and other cities. This has fueled concerns about possible disturbance of manufacturing and trade.
“All policies that have a significant impact on capital markets should be coordinated with financial management departments in moving forward to maintain stability and consistency of policy expectations,” Liu said.
China is encouraging term institutional investors to increase their equity holdings, he said, after China’s blue chip index closed at a 21-month low. in the previous session.
the government will also promote stability and health development of the platform economy and will grow steadily forward and complete corrections of big platform companies like soon as possibleLiu added.
China will take steps to boost the economy in the first quarter and monetary policy should embark on initiatives for support the economyLiu was also quoted as saying.
the government take vigorous and effective measures to prevent and resolve risks in the property sector, he said.
Regulators in mainland China will step up their communication and coordination with Hong Kong regulators on financial market stability, Liu said.
China second leader, Premier Li Keqiang, said last week the government hope to generate up to 13 millions new jobs this year but done face to “many difficulties and challenges.” Forecasters say the ruling Communist Party is likely to struggle to meet his official 5.5% economical growth target, the lowest since the 1990s.
the main Stock market index in Shanghai and Hong Kong slipped more more than 10% this year after the debt repression. Tighter control of internet industries and a spat with Washington on Surveillance of Chinese companies with shares negotiated on US stock exchanges have added to the pressures on the direction.
Liu “talked about stopping the stock market rout”, Larry Hu and Xinyu Ji of Macquarie Group said in a report.
“The ton of the meeting is strong, suggesting that policy makers are deeply concerned on the recent market rout,” they said.
Share the prices of some companies, including e-commerce giant Alibaba Group, have fallen sharply half on foreign scholarships from start of last year after they have been hit through antimonopoly and other investigations.
Chinese stock markets rebounded after the announcement. Hong Kong’s Hang Seng Index climbed 9.1% while the Shanghai Composite Index rose 3.5%.
Hong Kong Trade shares in Alibaba jumped 25.8%. Tencent Holdings, operator of popular messaging service WeChat, jumped 23%. Kuaishou Technology live streaming site added almost 34%.
by Xi government promised to support entrepreneurs who create china new jobs and wealth. But businesses and investors are uneasy following a vague of anti-monopoly and data security investigations, multi-million dollar fine sand public critical of internet companies.
More generally, world the markets are in a particularly volatile state given the uncertainties brought by Russia invasion of Ukraine, which strongly pushed up commodity prices higher and increased risks of always more disturbances at trade at a time when economies are just begins to recover from the pandemic.
The meeting of that of the Cabinet financial Stability Committee promised to “propose supporting measures” for the real domain markettold Xinhua, although he gave no details of possible initiatives.
The sale and construction of housing, industries that support millions of jobs, diving last year after Beijing debt repression. the government tried to revive demand telling banks to lend more for home buyers, but economists say Beijing is moving with caution to avoid light a rise in housing costs and debt.
The agency that regulates Chinese banks and insurers promised in a separate announcement to encourage lenders tosupport development of the real economy” by maintaining a moderate loan growth.
He promised to support the “healthy development” of real domain while repeating the official slogan that housing is “for alive, no for speculation.”
The agency said China’s state-owned insurers would be encouraged to increase investment in stock markets.
Cabinet officials have promised to coordinate more closely on policies that will affect financial markets and to move with caution on carry out anything that might upset them.
the government “will promote the development” of Internet industries and improve their competitiveness, Xinhua said, without giving details.
Beijing “will continue to support overseas share lists,” the report said.
He said Chinese and American regulators have a “good dialogue” on stock markets and work on a map for cooperation following disputes over Audit requirements which led to a menace expulsion of certain Chinese companies off American exchanges.
