China Vows to Stabilize Markets After Rout, Offers No Detail

  • Regulator makes pledge on Sunday after last week’s stock slide
  • Academic calls for stabilization fund, investors vent online

WATCH: China Regulator Vows to Stabilize Markets After Rout, Offers No Detail

Source: Bloomberg

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China pledged to stabilize markets after shares sank to a five-year low in chaotic trading on Friday, but policymakers offered no specifics on how they plan to end a selloff that’s erased more than $6 trillion of value and dented confidence in the world’s second-largest economy.

The China Securities Regulatory Commission vowed on Sunday to prevent abnormal fluctuations, saying it would guide more medium- and long-term funds into the market and crack down on illegal activities including malicious short selling and insider trading.