Chinese exchanges woo foreign investors after worst start in 9 years

China’s top two stock exchanges met representatives of foreign money managers and investment banks, as regulators look at ways to shore up sentiment among overseas investors after the market’s worst start to a year since 2016.

The shift to a more aggressive monetary and fiscal easing at last month’s Politburo meeting and subsequent economic work conference has improved expectations about the nation’s economic prospects and bolstered confidence among global investors, the Shanghai and Shenzhen bourses said in separate statements on Sunday night after meeting representatives of 16 unnamed overseas money managers and investment banks.

The participants suggested more presentations on Chinese policies and overseas roadshows by blue-chip companies to help foreign investors better understand the dynamics of the economy and publicly traded companies, the statements said.

“The foreign institutions that attended the meeting made positive comments on the measures and the resolve by the Chinese government to stabilise growth,” the Shenzhen exchange said in the statement. “They have reached a consensus that the combination of existing and incremental policies have boosted the confidence among global investors and solidify the foundations for the improvement of China’s capital market in the long run.”

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Wild swings in Hong Kong and mainland China stock markets

The CSI 300 Index of onshore stocks tumbled nearly 3 per cent on the first trading day of the year, the worst start since 2016, prompting the China Securities Regulatory Commission to immediately dismiss rumours of massive mutual fund redemptions by insurance firms. Although the benchmark rose 15 per cent last year to snap three consecutive years of declines, the dismal start to the new year underscores prevailing caution among investors who want to see forceful stimulus implementation.

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