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A Chinese national flag flutters outside the China Securities Regulatory Commission (CSRC) building on the Financial Street in Beijing, China July 9, 2021. REUTERS/Tingshu Wang
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HONG KONG/BEIJING, July 29 (Reuters) - China stepped up attempts to calm frayed investor nerves after a wild markets rout this week by telling foreign brokerages not to overinterpret its latest regulatory actions, setting the stage for a rebound in beaten-down stocks on Thursday.
Chinese state media also joined in to say yuan-denominated assets in China remained attractive and that short-term market panic did not represent long-term value.
China stocks had their best day in two months on Thursday. The blue-chip CSI300 Index (.CSI300) jumped 1.9% and the Shanghai Composite Index (.SSEC) gained 1.5%, but for the week, the gauges are still down 4.7% and 3.9%, respectively.
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Global investors had dumped shares in Chinese companies after Beijing published rules over the weekend that ban for-profit tutoring in core school subjects. China has also launched an anti-monopoly campaign against tech giants.
On Wednesday night, the China Securities Regulatory Commission (CSRC) held a meeting with executives of top global investment banks in a bid to calm financial markets nerves, people familiar with the matter told Reuters.
In what appears to be a coordinated effort, state media including Xinhua, the China Securities Journal and the China Daily all published commentaries arguing local stock and bond markets remain attractive to investors, and that the country was still committed to opening up.
Sources say upright firms can list abroad By ZHOU LANXU | China Daily | Updated: 2021-07-29 09:33 Share CLOSE A trader reacts as he works on the floor of the New York Stock Exchange (NYSE) in New York, US, on March 18, 2020. [Photo/Agencies]
China remains supportive of domestic companies desiring to list overseas and will also soon unveil more measures to further open up its capital market to foreign entities, knowledgeable and reliable sources said on Wednesday.
The China Securities Regulatory Commission, the country s top securities regulator, has an open mind on Chinese companies choices in terms of preferred listing destinations, the sources said.
China tries to ease investor fears over crackdown: report
Issued on: Chinese recent regulatory crackdown has sent stocks plunging ISAAC LAWRENCE AFP/File 1 min
Beijing (AFP)
Beijing scrambled to calm investors after a crackdown on some of China s biggest firms rattled markets with regulators calling bankers in for a last-minute call Wednesday night, Bloomberg reported.
The call hosted by the China Securities Regulatory Commission included executives of international investment banks, Bloomberg added.
The business models of private tutoring firms were obliterated by a shock announcement on Saturday that they must become non-profits, sending stock prices crashing.
A source with knowledge of the call on Wednesday told Bloomberg that bankers were given the impression that the sudden edicts for education companies were not going to ripple out to other industries.
China steps up efforts to calm investor jitters; markets rebound
07/29/2021 4:45
HONG KONG/BEJING (Reuters) -China stepped up attempts to calm frayed investor nerves after a wild markets rout this week by telling foreign brokerages not to overinterpret its latest regulatory actions, setting the stage for a rebound in beaten-down stock on Thursday.
Chinese state media also joined in to say yuan-denominated assets in the country remained attractive and that short-term market panic did not represent long-term value.
By midday, China s blue-chip CSI300 Index gained 1.4% but was still down over 5% so for the week. The Shanghai Composite Index rose 1%, reducing the week s loss to 4.3%.