CSRC meets companies in effort to boost market confidence

The China Securities Regulatory Commission (CSRC) recently arranged two meetings with domestic listed companies to learn about the problems they face, with experts calling this an aim to help boost the market’s confidence, domestic news site 21jingji.com reported on Wednesday.

Representatives from a total of 15 listed companies attended the first meeting on Sunday, with 10 from the Shanghai stock market and five from Shenzhen, the report said. CSRC Chairman Liu Shiyu hosted the meeting on Sunday.

Those companies included centrally-administrated Stateowned enterprises (SOEs) such as China Life Insurance Co, China State Construction Engineering Corp and China National Petroleum Corp, while some emerging businesses like information technology company iFlytek Co also attended, according to the report.

Some SOEs told the meeting that their development has been stable and that they do not have problems in capital adequacy that the market is concerned about, the report said, adding, however, that a few private companies have said that in the new market environment, they may face survival problems.

The CSRC tried to learn about the situation of listed firms by having them attend the meetings, helping to enhance the confidence of the market and boost market morale, Yang Delong, an expert with First Qianhai Fund, was quoted as saying.

The media report also cited an anonymous expert who said that advice from corporate representatives reflects the actual situation of the market, and so if the CSRC was to accept such advice and make some supervision changes, the meetings could be considered to have embodied “great value.”