China 'harmonizes' stock market ahead of party congress
Staff Reporter 2012-09-11 13:38 (GMT+8)
Beijing's stock market surged last Friday. (Photo/Xinhua)
As the Chinese Communist Party's 18th National Congress approaches, China's securities authorities are seeking to stabilize the country's stocks market to create a rosy outlook ahead of the once-in-a-decade leadership transition in the world's second-largest economy, reports our sister newspaper China Times.
The A-share market has been bullish so far this month. A total of 163 shares moved up by their daily limit last week as an unusual atmosphere of optimism flooded the market which could be attributed to a series of aggressive "stabilization" moves by Beijing.
Last Tuesday, the China Securities Regulatory Commission issued a warning via the media which said it would seriously trace anyone who fabricated rumors in the market, as well as stating its determination to stabilize the market with the help of local regulators. The following day, the National Development and Reform Commission, the country's top economic planning agency, approved 25 urban rail projects potentially worth more than 800 billion yuan (US$127 billion), which are expected to stimulate the country's slowing economy and fuel its stock market.
On Sept. 7, the securities commission urgently summoned executives from a number of leading corporations to Beijing for a seminar, asking advice about how to keep the market operating well and reminding the participants to "cherish" and "maintain" the market.
According to Shanghai's First Financial Daily, the seminar was attended by representatives of leading private equities like CDH Investments, Hony Capital and private placements like Chongyang, Beijing StarRock Investment Management and V. Stone.
The previous gloom in the market radically changed after the authorities took action, said the newspaper, though some analysts reminded investors not to become giddy as the feel-good factor may be only temporary.
