China Seeks to Calm Investors With Words and Cash After Rout
- Stock traders shouldn’t overreact to new rules: Financial News
- Beijing wants tidy deleveraging process, OCBC economist says
China Seeks to Calm Investors
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China is breaking out its mouthpieces -- and wallet -- as it seeks to soothe investors in the face of tighter financial market regulations.
The central bank-run Financial News urged stock investors not to overreact to tougher regulations in front-page commentary Wednesday. The monetary authority will prevent swings in liquidity from exceeding tolerable levels, the official Xinhua News Agency-owned China Securities Journal added in a separate front-page opinion piece. The People’s Bank of China then injected more cash into the financial system through open-market operations Wednesday than on any day since January as the benchmark government bond yield climbed to the highest level in two years.