21 July, 2015, 12:00 am
CHINA must learn lessons from its stock market rout, the country’s vice finance minister said on Saturday, signalling his intent to focus on supervision and the development of new frameworks to make it possible to weather any future market turbulence.
China’s stock market plunged by nearly a third at one stage earlier this month from a mid-June peak, wiping about $US4trillion ($F8.55tn) from share values as investors were spooked by speculation that China’s central bank was about to end its monetary policy easing.
The slide sparked China’s biggest rescue effort of its equity market, with the Government launching a series of moves that included halting flotations and banning companies and their executives from selling shares. Zhu Guangyao told Reuters Beijing was considering new policies. “There is a mismatch for supervision, and that is a real challenge,” he said.