SEPTEMBER 7 (CCTV) — China’s stock market has stabilized and risks have been released to some extent, the securities regulator said Sunday.
Market transactions are currently normal for the most part, with liquidity being relatively abundant and innate stability being improved, the China Securities Regulatory Commission (CSRC).
China securities regulator also said to deepen reforms, improve legal framework and enhance market supervision, by possibly introducing mechanisms such as a stock index circuit breaker system, in a bid to prevent further abnormal fluctuations.
The benchmark Shanghai Composite Index surged about 154 percent from July 2014 to as high as 5,178 points on June 12, 2015, but plunged more than 38 percent by Wednesday.
Panic selling came along with the free fall and high-leverage stock financing accelerated the plunge after fueling the previous surge, resulting in looming liquidity risks and even systemic financial risks, the regulator said.
The CSRC said it will study introduction of a stock index circuit breaker system, a point at which trading will be suspended for a period of time in response to substantial drops.
