SOURCE / ECONOMY
Shanghai securities, futures, asset management associations vow to maintain market stability
Published: Apr 27, 2022 12:45 AM
 
A view of Shanghai.Photo:VCG

A view of Shanghai.Photo:VCG


 
Securities, futures and asset management firms in Shanghai have pledged to maintain market stability and help with epidemic prevention, according to a notice from three financial associations in Shanghai on Tuesday. China's benchmark Shanghai Composite Index fell below 2,900 points on Tuesday following the previous day's nosedive.

According to the notice, Shanghai Securities Association, Shanghai Futures Association and Shanghai Asset Management Association noted that professional institutional investors should undertake in-depth analysis based on enterprise fundamentals and help to maintain stability in the capital market, in order to enhance market confidence and build solid foundations for market development. 

On Tuesday, the benchmark Shanghai Composite Index shed 1.44 percent to close below 2,900 points, after Monday's 5.13 percent plunge.

The notice said that professional institutions should actively monitor bond risks and provide early warning and strengthen communication with investors. Moreover, they should provide comprehensive risk management tools covering interest rates, credit and exchange rates to help enterprises address market price fluctuations and the impact of the epidemic, in order to enhance their ability to prevent and resolve risks during production and operation.

In terms of serving the real economy, the associations called for measures to meet the financing needs of enterprises in key industries including biomedical and health enterprises that make COVID-19 vaccines, antigen test kits and treatments. 

The institutions should also increase financing support for enterprises in epidemic-hit sectors like transportation, retail, catering, and culture and tourism to help them resume work and production.

The notice also said that professional associations should increase financial innovation and enhance investment in environmental protection in accordance with the country's policies.