Securities watchdog to channel more medium- and long-term capital into China markets

Following sharp sell-off, China Securities Regulatory Commission announces raft of measures aimed at maintaining smooth market operations

At a meeting on Thursday, the China Securities Regulatory Commission announced a raft of measures aimed at maintaining smooth market operations and reinforcing the capital market’s resilience.

The regulator said it would “more precisely and effectively implement counter-cycle adjustments”, pushing to steadily increase the scale and proportion of medium- and long-term capital entering the equity market.

“We must strengthen policy reserves to deal with global market volatility and cross-border risk transmission, building a solid breakwater and sea wall to guard against external risk shocks,” the CSRC said in a statement issued after the meeting.

The regulatory push comes on the heels of a sharp sell-off earlier in the month. State-owned conglomerates including investment holding companies China Reform Holdings and China Chengtong Holdings Group recently deployed tens of billions of yuan to purchase A-shares, helping to put a floor under the market slide.

Earlier in the week, CSRC chairman Wu Qing chaired a high-level symposium with institutional asset managers, corporate executives and retail investors to solicit recommendations on making the market more stable.