Commentary: Can Regulators Reverse China’s Market Slump?

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Although investors are hopeful that Chinese stocks will do well in the Year of the Dragon, any return to an upward trajectory depends on whether there are improvements in macroeconomic fundamentals and a restoration of investor confidence. Photo: VCG

The CSI 300 Index, a benchmark for major stocks listed on the Chinese mainland stock market, has been on a downward trend for three consecutive years. The issue of low investor confidence was evident in the first half of last year and became a concern for policymakers.

The Politburo, in its July meeting, proposed measures to invigorate the capital market and boost investor confidence. Over the following six months, a slew of supportive measures were introduced to stimulate the capital market.