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China can debate market rigging even as West can't
CSRC's Guo Says Stock Intervention Needed at Times, Xinhua Says
By Weiyi Lim
Bloomberg News
Tuesday, January 22, 2013
http://www.bloomberg.com/news/2013-01-22/csrc-s-guo-says-stock-intervene...
China's securities regulator said intervention in the nation's stock market is necessary at "key moments" because it isn't mature, the official Xinhua News Agency reported.
"Volatility is high, and don't forget, China is still a developing country," Xinhua quoted China Securities Regulatory Commission Chairman Guo Shuqing as saying at a national securities and futures supervision meeting.
Net share purchases by China's social security fund were 42.8 billion yuan ($6.9 billion) last year and totaled 42.7 billion yuan by qualified foreign institutional investors, Xinhua cited Guo as saying. They were the biggest net purchasers, Xinhua reported.
... Dispatch continues below ...
Opinion Around the World Is Changing
in Favor of Gold -- Find Out Why
When Deutschebank calls gold "good money" and paper "bad money". ...
http://www.gata.org/node/11765
When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ...
http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan...
When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ...
http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan...
When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ...
http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold...
When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ...
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The Shanghai Composite Index (SHCOMP) erased a 1.2 percent loss and rose 0.3 percent after Guo's comments. The gauge resumed its decline in the afternoon to end the day 0.6 percent lower at 2,315.14 after Xinhua said in an unsigned commentary after Guo's remarks that intervention may have a negative impact. The immaturity of a market shouldn't become an "excuse" for regulators to step in, Xinhua said in the commentary, which was posted on its Weibo microblog on Sina.com.
The Shanghai Composite's 10-day volatility rose to 23.3 today, the highest level since Dec. 26, data compiled by Bloomberg show. The index has rebounded 18 percent since reaching an almost four-year low on Dec. 3 on optimism that Chinese economic growth will recover.
Guo said foreign institutional investors have stabilized China's stock market, Sina.com reported on Jan. 16. The official was cited by the Shanghai Securities News the same day as saying China would push forward capital market reforms and deepen reform of initial public offerings.
Regulators have accelerated approvals for overseas firms to buy securities from Chinese markets. The State Administration of Foreign Exchange awarded $15.8 billion of quotas for qualified foreign institutional investors to trade stocks and bonds in 2012, according to regulatory data compiled by Bloomberg. That's more than the previous five years combined.
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