Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Exclusive-China securities regulator met foreign banks to soothe economic concerns-sources

Stock MarketsJan 28, 2022 11:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A man stands near a screen showing news footage of Chinese President Xi Jinping at the China Securities Regulatory Commission (CSRC) building on the Financial Street in Beijing, China July 9, 2021. REUTERS/Tingshu Wang

By Xie Yu and Selena Li

HONG KONG (Reuters) -The China Securities and Regulatory Commission (CSRC) met this week with executives at top western banks and asset managers to reassure them about the country's economic prospects after regulatory crackdowns in 2021, three people with direct knowledge of the matter said on Friday.

CSRC Vice Chairman Fang Xinghai hosted the virtual meeting with more than a dozen foreign financial institutions on Tuesday, said the people, who declined to be identified as they were not authorised to speak to the media.

Senior executives from firms including BlackRock (NYSE:BLK), Credit Suisse (SIX:CSGN), Fidelity International, Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS) and UBS attended the meeting, said two of the sources.

Fang reassured the meeting participants that China will achieve "respectable growth" in 2022, one of the people said.

Fang also said that China's leadership understood that the regulatory changes Beijing introduced in 2021 would affect economic growth but was determined to tolerate the pains, the person said.

However, 2022 will be different year as it will have a series of significant events, including the key once-in-five-years Communist Party congress later this year, Fang said, according to that person.

The CSRC did not immediately respond to a request for comment.

Fidelity and UBS declined to comment, while the other companies did not immediately respond to a request for comment.

The Chinese regulator called the meeting against the backdrop of a slowdown in growth in the world's second-largest economy amid its struggles with sporadic small-scale COVID-19 outbreaks and the darkening outlook for its heavily indebted property sector.

SLOWING ECONOMY

The economy grew by 4% in the fourth quarter from a year earlier, its weakest expansion in 1-1/2 years and China's central bank has already started cutting interest rates and pumping more cash into the financial system in response.

The International Monetary Fund said in a report https://www.reuters.com/markets/rates-bonds/imf-warns-unbalanced-china-recovery-policy-uncertainty-2022-01-28 on Friday that China's economic recovery was well advanced but imbalanced because of weak consumption, and also warned of uncertainty brought by regulatory crackdowns on the technology sector and slowing productivity.

Chinese regulators last year took aim at tech giants, private education companies and other firms, targeting unfair competition and data governance.

Such reforms could help growth but can damage market sentiment which in turn could dent investment, the IMF said.

The CSRC was also keen to hear from the meeting participants whether foreign financial institutions' asset allocation to China will change because of the prospect of rising U.S. interest rates, said the person.

Federal Reserve chief Jerome Powell unleashed bets on five or more hikes this year after he left the door open on Wednesday to raising rates faster than in previous cycles.

Fang also told the executives that China and the United States were making progress in coordinating regulations governing Chinese companies listed in New York and there could be a "positive surprise" by June or earlier, the person said.

The U.S. Securities and Exchange Commission said last month that U.S.-listed Chinese companies must disclose whether they are owned or controlled by a government entity and provide evidence of their auditing inspections https://www.reuters.com/business/us-sec-mandates-foreign-companies-spell-out-ownership-structure-disclose-2021-12-02.

The rule advances a process that could lead to more than 200 companies being kicked off U.S. exchanges, making some Chinese companies less attractive to investors.

Exclusive-China securities regulator met foreign banks to soothe economic concerns-sources
 

Related Articles

Stocks rally as euro gains on likely rate hikes
Stocks rally as euro gains on likely rate hikes By Reuters - May 23, 2022 4

By Herbert Lash and Marc Jones NEW YORK/LONDON (Reuters) -U.S. and European stocks rallied on Monday, with the S&P 500 staying clear of a bear market, while the euro leapt after...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email