China has committed to easing its crackdowns in a bid to boost the economy, according to a report by state media.
- China’s top financial policy headed by Vice Premier Liu He said the government should take a proactive approach that would boost markets, and take the interests of investors into account.
- The country’s banking regulator assured that it would back insurance companies seeking to hike their stock holdings, with the latest announcement indicating a possible end to the regulatory crackdown on internet firms in the near term.
- The Financial Stability and Development Committee also cited the need to drive economic growth further in the first quarter, committing relief to investors on several fronts. It also noted that monetary policy will be proactive, and loans will grow.
- The announcement comes after Chinese capital markets were hammered by regulatory issues such as the restrictions on property developers, along with crackdowns on major firms such as Alibaba Group Holding and Tencent Holdings.
The announcement drove equities higher, with the Hang Seng China Enterprises Index up 13% to mark its biggest climb in four years.
HSI closed up 9.08% and TCEHY down 3.29%, while BABA is up 19.33% premarket.