ANBOUND: China Has to Deal With Surplus of Capital
ANBOUND
As a result of the immense pressure from various parties, the securities regulator has suspended the circuit breaker mechanism hastily, making China's first ever circuit breaker mechanism the most short-lived system in the history of stock market.
ANBOUND’s chief researcher, Chan Kung, is of the view that the market innovation in China’s financial market should not go to the extreme, whether it is market development or policy development, the speed must be controlled.
The fundamental factors affecting the capital market are the economic downturn in China and a global surplus of capital. China is currently facing capital surplus and it has to deal with the surplus of capital.