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China vows market stability after largest single-day drop

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Beijing: China has vowed to stabilize its stock markets after the share prices on the Shanghai Stock Exchange plunged on Monday, the largest single-day drop since June 2007. Shanghaistockexchange

China Securities Regulatory Commission (CSRC) will continue to take measures to stabilize the stock markets, Global Times cited analysts as saying. The analysts added that fears that the government may halt support measures may have triggered the drop.

The CSRC also said that it will look into the possibility of malicious short-selling activities, and welcome public support in identifying alleged short sellers and “severely” punish offenders, the media report said.

The benchmark Shanghai Composite Index plunged 345.35 points to close at 3,725.56 points on Monday, while the Shenzhen Component Index fell by 1,025.46 points, or 7.59 percent, to 12,493.05 points.

Li Daxiao, chief economist at Shenzhen-based Yingda Securities, was quoted as saying that the weak economic data is only a minor reason for souring market sentiment.

“The more important factor is that some stocks on the two bourses are still overvalued, leading to the market correction,” Li told the Global Times on Monday.

Authorities announced measures to arrest the market slump that began on June 12. It includes a relaxation on margin trading rules – using borrowed money to invest in the market – a ban on major shareholders from selling within six months and a crackdown on “malicious” short selling.

“If the market remains turbulent, the government may roll out additional measures to back the stock market,” Liu Xuezhi, an analyst at the Bank of Communications, told the Global Times.

(IANS)

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China and Pakistan reach a Consensus on Defense Relations

The Prime Minister said Pakistan is willing to enhance strategic cooperation and pragmatic exchanges in all sectors with China, and ensure the smooth development of the China-Pakistan Economic Corridor and contribute to the regional development and prosperity.

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He said the two militaries should also promote their defence relations comprehensively in the new era, maintain the common interests of the two countries and peace and stability of the region as well as the world.
Visiting Chinese Vice Chairman of the Central Military Commission Zhang Youxia. Wikimedia Commons.

Visiting Chinese Vice Chairman of the Central Military Commission Zhang Youxia has said the Chinese and Pakistani militaries should implement the consensus reached by leaders of the two counties and enhance strategic communication and pragmatic cooperation.

Zhang made the remarks during his meeting with Pakistani Prime Minister Shahid Khaqan Abbasi on Thursday, appreciating that the Pakistani side firmly supports China over issues related to China’s core interests, Xinhua news agency.

He said the two militaries should also promote their defence relations comprehensively in the new era, maintain the common interests of the two countries and peace and stability of the region as well as the world.
Pakistani Prime Minister. Wikimedia Commons.

He said the two militaries should also promote their defence relations comprehensively in the new era, maintain the common interests of the two countries and peace and stability of the region as well as the world.

For his part, Abbasi said Pakistan and China have been seeing close relationships and have carried out broad and deep defence cooperation, adding that Pakistan firmly sticks to the one-China policy.

The Prime Minister said Pakistan is willing to enhance strategic cooperation and pragmatic exchanges in all sectors with China, and ensure the smooth development of the China-Pakistan Economic Corridor and contribute to the regional development and prosperity. IANS.

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