The Chinese government on Wednesday tried to reassure nervous investors with promises of support for real estate and technology companies after regulatory measures sent share prices plummeting.
Regulators should issue market-friendly policies to “invigorate the economyofficials said at a cabinet meeting chaired by Vice Premier Liu He, President Xi Jinping’s top economic adviser, the official Xinhua news agency reported.
The announcement was apparently meant to bolster business and investor confidence as the ruling Communist Party tries to revive economic growth, which slowed to 4% in the final quarter of 2021. For the full year growth was 8.1%.
The pullback was triggered by a drop in construction and home sales after Beijing launched a real estate debt penalty that some authorities see as dangerously excessive.
This added to private sector anxiety about the status of Chinese companies that were the subject of antitrust and data security investigations, multimillion-dollar fines and criticism of internet companies, as well as a dispute with Washington over the supervision of companies. listed on the United States Stock Exchanges.
The Xi government has promised to support entrepreneurs who create jobs and wealth. But the crackdown has shaken the private sector and there is no sign of when the uncertainty might end.
Wednesday’s announcement gave no sign that campaigns against debt, monopolies and other regulations have ended. But some economists suggest that the crackdown may have peaked with the announcement of a “turn in politics” in December to focus on the short-term goal of bolstering economic growth.
Share prices of e-commerce giant Alibaba Group and other companies have nearly halved on foreign stock markets, wiping out more than $1 trillion in share value since the start of 2021.
liuspoke to stop the market crisis”, according to a report by Larry Hu and Xinyu Ji for the Macquarie Group.
“The tone of the meeting is strong, indicating that the recent market crisis deeply concerns those who take the measures”, the analysts added.
Source: Gestion
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