International finance fluctuations won’t change the upward prospect of China’s stock market: official
Published: Mar 22, 2020 12:13 PM

Investors at a stock exchange in Nanjing, capital of East China's Jiangsu Province. Photo: VCG

As China's A-share market showed strong resilience since the outbreak of the novel coronavirus, temporary international financial fluctuations will not change the upward prospect of China's stock market, a senior financial official said Sunday.

Li Chao, vice chairman of the China Securities Regulatory Commission (CSRC), made the comment at a press briefing on Sunday. 

He said about 20 billion yuan of ($2.82 billion) foreign capital had retreated from the A-share market in the Chinese mainland, but the volume is not big and will not pose a shock to the domestic market.

"The overall market valuation of the A-share market is relatively low, showcasing more worthiness of being invested," Li said.

In the first two months of 2020, a total 38 companies launched IPOs in the Chinese mainland, raising a total of 72.4 billion yuan in funding, data from the CSRC showed.

The amount of funds raised in the country's bond market rose 30 percent year-on-year to 1.1 trillion yuan, according to the CSRC.

China's A-share market posted better performance than the US stock market this week. The Shanghai Composite Index dropped 4.91 percent through the week ending on Friday, while the Shenzhen Component Index dropped 6.29 percent in the same week.

By contrast, the Dow Jones slumped 17.30 percent during the same week, and the NASDAQ dropped 12.64 percent while the S&P 500 plunged 14.98 percent.

Over the past 10 days, the US stock triggered a key circuit breaker four times.

Global Times