(Bloomberg) — China stock market’s ugly start to 2022 has forced its securities regulator to assuage investors’ frayed nerves by pledging measures for stability.
China Securities Regulatory Commission Chairman Yi Huiman said the watchdog will adopt various measures to avoid volatility and “firmly” prevent big fluctuations, according to an interview with state TV network aired Thursday. CSRC will evaluate the timing and conditions before rolling out major policies.
While Huiman’s comments are similar to those he made a week ago, they may hold more significance after the stock market’s rocky start to this year and Communist Party officials drumming up macroeconomic stability ahead of its 20th congress later this year.
China’s equity benchmark, the CSI 300 Index, gained as much as 0.8% as of 9:26 a.m. Friday, rising for the first time in four sessions. The measure dropped 2.5% in the first three trading days of 2022.
Traders kicked off 2022 by dumping last year’s best performers in favor of old economy stocks. The rotation came amid a government policy shift to prioritize economic stability this year over structural adjustments.
Read: China Traders Give Old Darlings the Boot to Trade Policy Shift
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