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New | People's Bank of China calls for more reform to foster capital markets development

Central bank says development of legal infrastructure will be stepped up as mainland and HK stocks recover from sell-off and ready for new rally

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Investors stay glued to the computer screens as the Shanghai share market underwent another sell-off yesterday morning. Photo: Reuters

The People's Bank of China on Friday called for a "healthy" development of the country's stock market, a day after a slide in mainland Chinese and Hong Kong equities seemed to have been arrested.

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The securities and futures sector would deepen the State Council's push to foster a healthy development of the capital markets, centred on serving the real economy, the central bank said.

To maintain a stable and healthy development, market reforms and the building of legal infrastructure would be accelerated, it said.

"We fully realise the new economic situation has placed new demands on the mutual interdependence of the reform of our nation's capital markets and economic reform," the PBOC said its financial stability report.

Looking ahead, the report said, it would be easier for mainland chinese firms to list outside the country and there would be further improvements to the Shanghai-Hong Kong Stock Connect.

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The report called for the inclusion of mainland Chinese shares in international indices to speed up their internationalisation.

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