How to navigate the Chinese government’s ‘economic miracle’
A Chinese news agency reported that President Xi Jinping is considering allowing the country’s stock market to float on its own, with its own exchange, instead of the stock market regulator.
“The Central Committee will decide on the use of the financial system to raise capital on its stock market,” a Xinhua news agency report said, citing a source in the central government.
It was unclear if this was the case.
China’s stock markets have had to go through the central bank’s controls to gain access to the stock exchange since 2008, and they’ve remained in limbo since.
The state-owned China Securities Regulatory Commission (CSRC) and the Securities Regulatory and Administration Commission of China (SRACC) have overseen the stock markets since 2008.
Since then, they have worked on a set of rules that govern the market’s trading, trading fees, margin requirements and other measures.
Xi Jinping has been widely praised for his efforts to boost the stock-market market and has promised to use it to spur economic growth.
While China’s economy is still struggling to recover from the financial crisis that followed the 2008 global financial crisis, Xi has made significant investments in the stock and commodities markets.
According to Xinhua, the stock exchanges are the world’s largest markets and account for over 80 percent of the market value of China’s assets.
In March, Xi promised to create a global financial centre, where trading will be conducted, that will also allow Chinese firms to exchange shares.
Xinhua reported that the government’s aim was to boost financial stability in the market and to encourage companies to adopt a diversified portfolio.