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Shanghai Exchange Aims for Stability Ahead of Congress

The exchange said it would try to thwart big or sudden swings in capital markets, and make solid preparations to expand reforms in the initial public offering process


Shanghai Stock Exchange
Officials running the exchange said they will try to ensure stability in the run-up to the party congress at the end of this year. A man wearing a protective mask is seen inside the Shanghai Stock Exchange building in this file photo by Aly Song, Reuters.

 

The Shanghai Stock Exchange (SSE) has vowed to maintain market stability ahead of the 20th Party Congress later this year, while warning of “resolutely” thwarting big and swift swings in the capital markets.

The exchange will also help stabilize economic growth by helping rein in coronavirus cases while supporting the resumption of work, “and will manage and shape market expectations toward the positive side”, the SSE said in a statement posted on its website on Sunday.

“The SSE should fully understand the huge political significance of the 20th Party Congress, and effectively maintain stability of the capital market,” according to the statement, published after the SSE held an internal meeting last week.

Chinese President Xi Jinping is widely expected to secure an unprecedented third term as leader of the Communist Party during the congress later this year, which is held once every five years.

The SSE also said it would make solid and detailed preparations to expand reforms of the initial public offering process, and will shoulder the political responsibility in preventing and resolving financial risks.

The Shanghai Composite Index has rebounded roughly 14% from its low point this year hit on April 27, but is still down about 10% so far this year.

 

  • Reuters with additional editing by Sean O’Meara

 

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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