China is committed to ensuring stability in its capital markets and will decisively prevent abnormal fluctuations, according to a statement from the China Securities Regulatory Commission (CSRC) as the country grapples with a deepening stock selloff.
“Authorities will actively work with relevant parties and coordinate the implementation of various measures to stabilize the market and boost confidence,” the CSRC announced. China’s stock market experienced further declines last week, with the key CSI 300 Index reaching a five-year low. January marked a record sixth consecutive month of losses for the benchmark gauge, plunging by 6.3%. In response, expectations arose regarding a 2 trillion yuan ($278 billion) rescue package, coupled with the central bank’s decision to cut banks’ reserve requirement ratio.
To combat the downturn, the CSRC emphasized its commitment to cracking down on illegal activities, including market manipulation, malicious short selling, insider trading, and fraudulent issuance, in accordance with the law. In a bid to support the struggling stock markets, China had previously suspended the lending of certain shares for short selling.
Additionally, the regulatory authority outlined plans to intensify efforts to guide more medium- and long-term funds into the market. The measures aim to restore confidence, stabilize the capital market, and prevent further abnormal fluctuations.