CSRC meets com­pa­nies in ef­fort to boost mar­ket con­fi­dence

Global Times US Edition - - BIZUPDATE -

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 meet- ing 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.”

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