There is obvious nervousness about the state of China's economy, indicated also by China's four top economic officials all releasing statements on October 19 apparently in a coordinated attempt to project confidence and calm. According to Xinhua, Vice Premier Liu He attributed China’s stock market meltdown to the following four factors: (i)"external factors"; (ii) "China's economic structure is evolving"; (iii) market expectations have changed; and (iv) "in addition, there are also some technical factors." The head banking regulator Guo Shuqing said the risks are under control and"At present...systemic financial risks are completely controllable." People's Bank of China (PBoC) Governor Yi Gang indicated that expectations are out of whack with reality, and "Recent stock market volatility is mainly influenced by investors' expectations and emotions" and "The current stock market valuation at a historically low level is in contrast to China's stable and sound economic fundamentals." The Chairman of the China State Securities Regulatory Commission (CSRC) Liu Shiyu outlined nine measures to support the equity markets and aid private companies when he specifically underscored that private equity firms and local governments should buy more shares. He also made a strong pitch for the private economy, describing it as an important part of the national economy. and saying that the competitiveness of private enterprises is an important part of national competitiveness. The privately-held listed companies are public companies. We must firmly adhere to the "two unwavering", strengthen innovation from various aspects such as systems and tools, and support the development of private enterprises.
|
