Chinese Regulators Unveil Measures To Try And Save Crumbling Stock Market

  • Post category:News / US News

Chinese Regulators Unveil Measures To Try And Save Crumbling Stock Market


Get Your Patriot911 Newsletter In Your Email Inbox

China’s securities regulator announced Friday measures to stop the decline of the Chinese stock market following concerning economic indicators and property market fears, according to Reuters.

The China Securities Regulatory Commission (CSRC), the regulatory body in charge of the Chinese stock exchange, revealed a cut in trading costs, support for share buybacks and encouragement for long-term investment in an effort to reverse the bearish stock market outlook, according to Reuters. The stock market decline, caused by low investor confidence, is a symptom of concerning economic data and a real estate sector burdened by huge debts.

The Shanghai Composite Index, a measure of China’s stock market, measured around 3,130 points on Friday, reaching its lowest point since January, according to MarketWatch.

The CSRC is also studying plans to extend trading hours, boost development equity funds and encourage index-listed companies to buy back shares in order to improve their attractiveness for investors, according to Reuters.

Investors are timid about the Chinese market due to troubling economic indicators, with exports, investment, factory output and retail sales all slowing, according to The Washington Post. Real estate, which accounts for 1/4 of Chinese economic activity, is in crisis as major developers struggle to pay their debts.

Major Chinese real estate developer Evergrande Groupe, which holds $340 billion in debt, announced Friday it would be heading to U.S. bankruptcy court in order to get approval for a restructuring plan for debts to foreign bondholders in order to avoid a default, according to the Associated Press.

Other Chinese regulators, including the Ministry of Finance, are considering cutting the stamp duty on stock trades for the first time since 2008 in order to stimulate and revive confidence in the equity market, according to Bloomberg. The move would be most beneficial to Chinese brokerages and hedge funds that utilize rapid-fire trading strategies.

The Chinese government announced Tuesday it would stop reporting the unemployment rate for people between the ages of 16 and 24, which reached four times the overall unemployment figure at 21.3%, according to NBC.

Is Biden the ultimate embarrassment to our country?

This poll gives you free access to your Patriot911 Newsletter in your email inbox. Email field is required. Unsubscribe at any time.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

Daily Caller News Foundation
Share to break through the censorship!

JOIN US @NewRightNetwork on our Telegram, Twitter, Facebook Page and Groups, and other social media for instant news updates!


New Right Network depends on your support as a patriot-ran American news network. Donate now