Three Shanghai stock market trading associations have urged financial institutions and employees to stabilise the bourses and provide financing to industries hit by Covid-19, as China’s financial and commercial hub entered a fourth week of lockdown.
In a joint statement, the Shanghai Securities Association, Shanghai Futures Association, and Shanghai Asset Management Association said firms should operate financial services continuously and guarantee the security of funds and transactions.
China’s stock market has tumbled to two-year lows as the world’s second largest economy grapples with virus flare-ups, the Ukraine crisis, and US monetary tightening, with the main indices down more than 20% so far this year.
Professional institutional investors should “demonstrate responsibility and actively play their roles” by discovering value, stabilising markets and boosting market confidence, the associations said.
The associations also urged financial institutions to meet financing demand from companies engaged in developing and distributing Covid-19 vaccines, testing kits and medicines.
- Reuters, with additional editing by George Russell
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