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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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Sundar Pichai Clears Google’s China Centric Plans

Google had launched a search engine in China in 2006 but pulled the plug in 2010

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Google CEO Sundar Pichai speaks during a news conference in New Delhi. VOA

 Google CEO Sundar Pichai has for the first time gone public about his company’s China-centric plans and has stressed on its need to re-enter the Asian nation that has the world’s largest population, a media report said.

Pichai was speaking on Monday at Wired Magazine’s 25th anniversary summit here in the US.

Since China is an important market, Google is developing a censored search-engine for Beijing codenamed “Dragonfly” that would filter content deemed sensitive by its ruling Communist Party regime.

Google
Google CEO Sundar Pichai speaks at the Google I/O conference in Mountain View, Calif

“We wanted to learn what it would look like if Google were in China. It’s very early and we don’t know whether we would or could do this in China but we felt like it was important for us to explore, given how important the market is and how many users there are,” The Verge quoted Pichai as saying.

Information regarding Google’s “Dragonfly” project began surfacing in August and since then the company has faced severe backlash from its employees as well as the US government.

Google’s plan to launch the censored browser has come under heavy criticism from one of its former Asia-Pacific head of free expression who called it a “stupid move”.

In September, Google reportedly developed a prototype of “Dragonfly” that linked users’ search history to their personal phone numbers allowing security agencies to easily track users seeking out information banned by the government.

Google
Google’s plan to launch the censored browser has come under heavy criticism from one of its former Asia-Pacific head. VOA

Along with former Google Senior Scientist Jack Poulson, several other employees have resigned from the company citing lack of corporate transparency after it revealed its efforts about “Dragonfly”.

The company has been guarding the China-project details against the US Congress.

Appearing before members of the US Congress at a Senate Commerce Committee hearing in September end, Google’s Chief Privacy Officer, Keith Enright confirmed that the China search project does exist, but did not disclose much.

President Donald Trump’s administration has also asked Google to shun the “Dragonfly” project.

Google CEO Sundar Pichai
Google CEO Sundar Pichai. (Wikimedia Commons)

 

Though Pichai describes his company’s China plans as very preliminary, it is clear that backlash within and outside the company has been vocal and will only intensify in future, the report added.

Also Read: U.S. Government Warns People Against China-Linked Hacking Group

Google had launched a search engine in China in 2006 but pulled the plug in 2010, citing Chinese government efforts to limit free speech and block websites. (IANS)