China’s Stock Market Regulators to Meet with Leader Xi Jinping, Sparking Hope for Market Rescue

Introduction

Investors in China's stock market are eagerly awaiting a meeting between regulators and Chinese leader Xi Jinping. The news has sparked hope for a forceful rescue plan that could help revive the floundering markets. China and Hong Kong's stock markets have experienced significant losses, with almost $7 trillion wiped out from their peak values in 2021.

Regulators to Brief Top Leaders

According to Bloomberg, regulators led by the China Securities Regulatory Commission (CSRC) will meet with Chinese leader Xi Jinping. The purpose of the meeting is to update the country's top leaders on the current state of the markets. Unnamed sources familiar with the matter have provided this information.

Rally in Markets

The news of Xi Jinping's personal attention to the markets has led to a rally in investor sentiment. The hope is that this meeting will result in a robust market rescue plan. Both Hong Kong's Hang Seng Index and China's blue-chip CSI 300 saw gains as a result. On Tuesday, the Hang Seng Index closed 3.5% higher, while the CSI 300 ended over 3% higher.

Current Market Performance

Although the benchmark indices in Hong Kong and China are still lower year-to-date, the meeting between regulators and Xi Jinping has raised hopes of an imminent rescue plan. Economists at Dutch bank ING stated that this meeting signals the possibility of Beijing taking action to support China's struggling markets. As of now, the Hang Seng Index gained as much as 1.7% on Wednesday before trading 0.3% lower, and the CSI 300 was 1% higher.

Power of Xi's Involvement

While China's authorities have implemented several measures to stabilize the markets, including state-backed buying and restrictions on short-selling, analysts believe that Xi Jinping's personal participation could have a more significant impact. It remains uncertain if any new support measures will result from the meeting. However, the fact that China's leader is personally involved is seen as an encouraging development. Li Weiqing, a fund manager at JH Investment Management in Singapore, expressed optimism about the meeting, stating that it shows the authorities are taking the market decline seriously.

Conclusion

The upcoming meeting between China's stock market regulators and leader Xi Jinping has generated hope for a market rescue plan. The significant losses suffered by China and Hong Kong's stock markets in 2021 have raised concerns among investors. While Beijing has implemented various measures to stabilize the markets, the personal involvement of Xi Jinping is seen as a potentially more impactful development. As the meeting approaches, market participants eagerly await any potential support measures that may be announced.—————————————————————————————————————————————
By: htan@insider.com (Huileng Tan)
Title: China’s Stock Market Regulators to Meet with Leader Xi Jinping, Sparking Hope for Market Rescue
Sourced From: www.businessinsider.com/china-xi-jinping-personal-attention-markets-rout-boosts-stocks-sentiment-2024-2
Published Date: Wed, 07 Feb 2024 07:53:07 +0000