China’s Stock Market in Crisis: Premier Li Qiang Promises Stability
|A view of Shanghai, China. EPA-Yonhap News
As the Hong Kong and Chinese stock markets plunge, China has announced it will take stronger and more effective measures to stabilize the slumping stock market.
Reuters reported on the 22nd, citing Chinese state-run media, that the Chinese State Council made this announcement at a meeting chaired by Premier Li Qiang. The State Council emphasized that it will take more “forceful measures,” strengthening the investment of medium and long-term funds into the capital market to promote stability and investor confidence.”
While the US and Japanese stock markets are soaring, Chinese stocks are plummeting. Amid concerns about an economic slowdown, the Shanghai index fell 2.68% to 2756.34, a nearly three-year and nine-month low, due to disappointment that the People’s Bank effectively froze the benchmark interest rate, known as the Loan Prime Rate (LPR), for the fifth consecutive month. The Hang Seng Index in Hong Kong also fell 2.27%, and the Hang Seng China Enterprises Index fell 2.44%.
The State Council also announced on the same day that it will accelerate the upgrade of artificial intelligence (AI) in major industries.