Chinese security regulator convened an urgent virtual meeting with banking executives on Wednesday helping its under-pressure stock indexes surge.
CSI 300 is up +0.19%, Hang Seng Index is up +1.54%.
- The China Securities Regulatory Commission grew concerned about the rout in stocks and convened a meeting with banking executives on Wednesday night to ease market fears.
- The plunge in China’s stocks followed China’s reign on the private education sector, in a move to make them non-profit.
- The regulator convinced some banking executives that the policies in the education sector were not meant for the overall industry.
- Banking officials were worried about China’s move as they felt they were prime targets due to their heavy weightings on the country’s benchmark indexes.
- Beijing’s target on the private education sector is an extension of crackdowns in the domestic sector, with the tech sector being other culprits.