Long-term trend of China's stock market remains unchanged with limited impact from epidemic outbreak

Source:Xinhua Published: 2020/2/3 9:32:00

Individual investors follow the stock market at a bourse in Nanjing, East China's Jiangsu Province on Monday. Photo: IC

China's securities regulator said the novel coronavirus outbreak has limited impact on China's stock market and the long-term trend of the market remains unchanged.

The opening of stock market trading on Feb. 3 is showing China's respect for market rules and its determination to overcome difficulties, sources with the China Securities Regulatory Commission (CSRC) said in an interview with Xinhua.

The CSRC pledged to stay vigilant to any anomalies on the A-shares market and prepare hedging tools to buffer potential impact.

A series of measures currently under government deliberation to recover production and keep the economy stable will help improve market expectations, noted the CSRC.

Night trading of futures will be suspended starting Monday until further notice, said the CSRC.

The CSRC said risks relating to stock pledges are generally under control, and it will grant a six-month extension on stock pledge agreements for companies and individuals in Hubei Province where the coronavirus emerged and three to six months for other regions.

Brokerages will be encouraged by the CSRC and the People's Bank of China to issue new bonds like special financial bonds or corporate bonds to replenish liquidity.

Noting that companies hit by the outbreak could face short-term pressure to repay corporate bonds, the CSRC said it will set up "green channels" for issuance of new bonds and revise the timetable for repayment to ferry the companies through rough patches.

Posted in: ECONOMY

blog comments powered by Disqus