Shanghai Stock Exchange promises market stability ahead of Communist Party Congress

A man wearing a protective mask is seen inside the Shanghai Stock Exchange building, as the country is hit by a novel coronavirus outbreak, in the Pudong financial district in Shanghai, China, February 28, 2020 REUTERS/Aly Song

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SHANGHAI, July 25 (Reuters) – The Shanghai Stock Exchange (SSE) pledged over the weekend to maintain market stability ahead of the politically significant 20th Party Congress later this year, saying it will “resolutely” prevent significant and rapid fluctuations in the capital markets.

The stock exchange will also help stabilize economic growth by actively supporting coronavirus containment and work resumption, and will manage and shape market expectations towards the positive side, the SSE said in a statement posted on its website on Sunday.

“The ESS should fully understand the enormous political significance of the 20th Party Congress and effectively maintain the stability of the capital market,” said the statement, released after an internal ESS meeting was held last week.

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Chinese President Xi Jinping is expected to secure an unprecedented third term as leader of the Communist Party at 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 IPO process reforms and take political responsibility in preventing and resolving financial risks.

The Shanghai Composite Index (.SSEC) has rebounded around 14% since hitting this year’s low on April 27, but is still down around 10% so far this year.

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Reporting by Samuel Shen and Brenda Goh; Editing by Christian Schmollinger

Our standards: The Thomson Reuters Trust Principles.

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