A view of Shanghai. Photo: VCG
Shanghai securities, futures and asset management firms pledged to maintain market stability and contribute to epidemic prevention, according to a notice from three Shanghai financial associations on Tuesday. China’s benchmark Shanghai Composite Index fell below 2,900 points on Tuesday after falling the previous day.
According to the notice, the Shanghai Securities Association, Shanghai Futures Association and Shanghai Asset Management Association noted that professional institutional investors should undertake in-depth analysis based on company fundamentals and help maintain capital market stability. , in order to enhance market confidence and build a solid foundation for market development.
On Tuesday, the benchmark Shanghai Composite lost 1.44% to close below 2,900 points, after falling 5.13% on Monday.
The notice says professional institutions should actively monitor bond risks, provide early warning and strengthen communication with investors. In addition, they should provide comprehensive risk management tools covering interest rates, credit and exchange rates to help companies cope with market price fluctuations and the impact of the epidemic, to improve their ability to prevent and resolve risks during production and operation.
In terms of serving the real economy, the associations called for measures to meet the financing needs of companies in key sectors, including biomedical and health companies that manufacture COVID-19 vaccines, test kits antigens and treatments.
Institutions should also increase financial support to companies in sectors affected by the epidemic such as transport, retail, catering, culture and tourism to help them resume work and production.
The notice also states that business associations should increase financial innovation and strengthen investment in environmental protection in accordance with the country’s policies.