Amid rising hopes for a significant market rescue plan, China’s stock investors may finally see some relief after a recent report that regulators plan to meet with Chinese leader Xi Jinping to discuss the state of the markets. According to Bloomberg, the China Securities Regulatory Commission (CSRC) will be briefing top leaders in an effort to address the recent massive losses in China and Hong Kong’s stock markets.
The news of President Xi’s personal attention to the matter has sparked optimism among investors, as they believe that his involvement could lead to more effective measures to stabilize the markets. Despite this optimism, both benchmarks are still lower year-to-date. However, economists at Dutch bank ING believe that the CSRC’s meeting with Xi is generating hope for “an imminent rescue plan” from Beijing to support China’s struggling markets.
Despite recent gains in Hong Kong and China’s benchmark indices on Tuesday, both benchmarks have been underperforming year-to-date. Some analysts view these moves as less powerful than Xi’s personal participation in stabilizing the markets, as it underscores the severity of the situation. According to Li Weiqing, a fund manager at JH Investment Management, the news of President Xi’s involvement is encouraging and suggests that China’s authorities are doing everything they can to stabilize the markets. Despite this optimism, the CSRC had not immediately commented on the matter.