China's top financial affairs watchdog vowed on Wednesday to take measures to maintain stability of its housing and capital markets, and shore up economic growth during the first quarter of 2022.
The State Council's Financial Stability and Development Committee convened a meeting on Wednesday, in which the body vowed to properly address recent market concerns, including the problems hamstringing the property sector and to seek a cooperation scheme with the relevant US regulator to tackle US-listed Chinese stocks.
Market analysts said the meeting might center on stabilizing the nation's property and capital markets, while managing the financial risks whenever and wherever they are popping up.
In order to revitalize the economy during the first quarter of the year, the meeting stated that the monetary policy should be proactive in nature and the newly added loans should remain a moderate growth to support growth.
The committee vowed to promptly study and propose a strong and effective responsive initiative to manage any risks which may endanger the financial system.
In response to market concerns over the US-listed Chinese stocks, the meeting stressed that the relevant Chinese and US regulators have maintained good communication and have made progress on forming specific cooperation schemes to resolve the problems. The Chinese government continues to support all types of enterprises to get listed overseas.
Following recent regulatory uncertainty surrounding the US-traded Chinese firms, investors' confidence was significantly affected, causing a broad retreat of share prices at the Hong Kong stock market as well as Chinese mainland's A-share market over the past week, Dong Dengxin, director of the Finance and Securities Institute at the Wuhan University of Science and Technology, told the Global Times on Wednesday.
Regulatory authorities from both the Chinese mainland and the Hong Kong Special Administrative Region should strengthen communication and cooperation to ensure the stability of the Hong Kong financial market, according to the meeting.
As for the governance of the internet-based platforms, relevant authorities should continuously improve their supervisory mechanism to further promote the healthy development of the platform economy and improve their international competitiveness.
The meeting also emphasized that responsible authorities of the central government should actively introduce beneficial policies to shore up the equities market, while communicating with supervisory department in advance with any policy which may impact capital markets.
The meeting also stressed that financial institutions should firmly support the development of the real economy.
China's central bank said on Wednesday that it intends to firmly implement the tasks as assigned at the Financial Stability and Development Committee meeting, strengthen policy coordination with responsible departments, and take a variety of actions to maintain the stable and healthy development of the country's economy and the capital market.
The China Banking and Insurance Regulatory Commission also said on Wednesday that it will actively implement policies that are beneficial to maintaining the market order, and strongly support direct financing and promote the optimization of financing structures. Moreover, it will guide relevant financial institutions to phase in long-term investment concepts and carry out true and valuable investment to become the backbone of promoting China's capital market development.
Global Times
