(Bloomberg) -- The deepest slide in China’s stock market since an epic 2015 rout spurred one of the country’s top financial officials to assure that market that they’re able to keep risks under control.
Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said in a interview posted on the regulator’s website that recent “abnormal fluctuations” in the financial markets do not reflect the country’s economic fundamentals and “stable financial system.”
The comments from Guo, who’s also Communist Party secretary of the People’s Bank of China, come as policy makers grapple with a stock market that’s among the world’s worst performers, an economic slowdown and an escalating trade war with the U.S.
Guo also said that China will allow insurance companies to introduce products designed to ease liquidity risks caused by share pledging of listed companies. Hundreds of billions of dollars worth of shares are pledged as collateral for loans in China’s $5.4 trillion market.
To contact the reporter on this story: Lucille Liu in Hong Kong at xliu621@bloomberg.net
To contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Fion Li
©2018 Bloomberg L.P.
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