China Moves to Reassure Global Banks and Investors After Market Rout - The Wall Street Journal
China moved to ease investor concerns about crackdowns on listed companies, with a top regulator privately telling global financial firms that Beijing will consider the market impact before introducing future policies, people familiar with the matter said.
Fang Xinghai, vice chairman of the China Securities Regulatory Commission, spoke to representatives of global banks including Goldman Sachs Group Inc. and UBS Group AG, as well as some investment firms on Wednesday evening, according to the people. Yi Huiman, the securities regulator’s chairman, was also present at the closed-door meeting in Beijing, they added.
After the meeting, and following a series of upbeat articles in state media, Chinese technology stocks listed in New York and Hong Kong jumped, helping pull broader markets higher and clawing back some of their recent steep declines.
Mr. Fang told those present that China’s recent regulatory crackdowns on companies engaged in private tutoring, online financial services and other sectors are aimed at addressing problems in those industries and helping them grow in a proper manner, the people said. He also said China has no intention to decouple from global markets, and especially from the U.S., the people added.
The CSRC didn’t immediately respond to a faxed request for comment. Goldman and UBS declined to comment.