China’s top securities watchdog appeared in public just hours after he was reported to have offered his resignation, in what analysts said could be an effort by authorities to prevent market destabilisation.
The China Securities Regulatory Commission (CSRC) said in a statement on Thursday that its chairman Wu Qing was travelling to France and Brazil from November 10 to 13. It also displayed photos on its website of Wu taking part in meetings in the two countries.
The prompt and rare publicity of his activities could be seen as an effort to dispel rumours and prevent any turmoil in the capital markets after a Reuters report earlier in the day said the 60-year-old had sought approval to step down, citing health reasons.
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The report said it was unclear whether Wu’s resignation had been accepted or when he would leave office.
On his trip, Wu held bilateral talks with Marie-Anne Barbat-Layani, chair of France’s Autorite des Marches Financiers, and Otto Lobo, acting chairman of the Brazilian Securities and Exchange Commission (CVM), along with CVM board member Marina Copola, according to the CSRC statement.
The meetings focused on regulatory developments in the French, European and Brazilian capital markets, as well as deepening bilateral cooperation between the securities watchdogs, the CSRC said.
A view of the China Securities Regulatory Commission building in Beijing. Photo: Simon Song alt=A view of the China Securities Regulatory Commission building in Beijing. Photo: Simon Song>
During his time in Paris and Rio, Wu also met with international institutional investors, as well as Chinese enterprises and financial institutions operating in France and Brazil.
He promoted China’s capital market reforms and conveyed the outcomes of the country’s recent political leadership meeting, the CSRC said.
“The swift response [to the Reuters report] has never been seen before,” said Ivan Li, a fund manager at Loyal Wealth Management in Shanghai. “Whether the report is true or not, it is a message that no major reshuffle at the CSRC will happen any time soon.”
China’s benchmark Shanghai Composite Index has advanced 20.2 per cent this year, closing at 4,029.50 on Thursday, up 0.7 per cent from a day earlier.
As the main gauge hovers above the significant 4,000-point level, worries are mounting among small investors that heavy profit-taking could set in soon as powerful institutions look to lock up their gains.
