China’s CSRC to engage with participants to boost market confidence

China’s stock market confidence: China's securities watchdog has actively engaged with market participants in a bid to address concerns and boost market confidence. Following a series of seminars held on Sunday and Monday, led by newly appointed chairman Wu Qing, the China Securities Regulatory Commission (CSRC) is considering proposals aimed at enhancing scrutiny of company listings and trading activities.

The urgency to stabilise the market was underlined by the timing of these discussions, immediately following the Lunar New Year holiday, with the CSI300 index having recently plummeted to five-year lows.

A diverse array of stakeholders, including small investors, listed companies, money managers, and accounting firms, participated in these sessions. Their suggestions included advocating for stricter oversight of initial public offerings and the removal of companies that fail to meet qualification standards. Additionally, there were calls for a fairer trading framework and tougher penalties for those found in violation of regulations.

The CSRC has pledged to take these proposals seriously and swiftly implement viable solutions, underlining the commitment to maintaining market stability and managing risks effectively.

Wu Qing, known commonly as the "broker butcher" due to his previous regulatory role, assumed the position of CSRC chairman on February 7, succeeding Yi Huiman. Despite previous efforts by his predecessor to stabilise share prices, Wu's appointment signals a renewed focus on regulatory enforcement.

In a demonstration of the watchdog's resolve, punitive actions were swiftly taken against employees at China Merchant Securities for illicit stock trading, and Shanghai-based semiconductor company S2C Ltd was fined for fraudulent conduct related to its listing application, just days after Wu's appointment.

(With Reuters inputs)