China’s central bank, the PBOC, said on Wednesday that it will support stability in the stock market and guard against systemic and regional financial risks, according to a report from Reuters.
In a statement, the PBOC outlined that it will provide sufficient liquidity to China Securities Finance Corp, the state-backed margin finance company, via various channels.
It also stated that it will “closely watch” the movements on the nation’s stock market.
Let’s hope they haven’t been watching too closely otherwise they’ll have a headache.
It’s been a crazy open for Chinese markets on Wednesday with most indices falling more than 5% in initial trades. While there has been a modest recovery in recent minutes, all bar the ChiNext index in Shenzhen are lower by more than 2%. The benchmark Shanghai Composite, after a hour of trade, sits down 4.50%.