CRI听力:China Brokers Vow to Stabilize Stock Market

A group of 21 Chinese stock brokerages have announced plans to step in to -quote- "firmly stabilize" the country's stock market.

They're vowing to spend at least 120 billion yuan, or close to 20-billion U.S. dollars, on "blue chip" stocks in the A-share market this coming week.

The brokerages have promised not to sell-off their purchases until the Shanghai Stock Exchange gets back to 45-hundred points.

Guo Shuhua, securities analyst with First Capital, says the move is much-needed in China at the moment.

"The new move at this time is designed to stabilize the current fluctuations in the stock market and reverse a vicious cycle. But we know this won't happen within one or two trading. But with more policies coming out, the downward pressure should finally ease, allowing the stock market to rise once again."

Shanghai closed out the trading week on Friday down nearly 5.8-percent to end at 3686.

This is well below the psychologically important 4-thousand mark where the market was around 3-months ago.

Shanghai spiked to a 7-year high 3-weeks ago at around 52-hundred before beginning a massive downturn, which has seen it lose around 30-percent of its value in less than a month.

The move by China's main brokerages is the latest move in an attempt to break the market's three-week losing skid.

The People's Bank of China has already lowered both the interest rate and reserve requirement ratio for banks to inject liquidity into the market.

Both the Shanghai and Shenzhen exchanges have cut their transaction fees by around 30-percent.

The number of IPO's is also going to be cut back.

Securities regulators have also relaxed rules on margin trading, which will allow retail investors more flexibility in making trades.

At the same time, the China Securities Regulatory Commission says its investigating possible market manipulation.

The CRSC is demanding more accurate media reporting connected to the downturn of the A-share market.

The call follows a series of online reports which have suggested a number of traders have killed themselves and their families.

The CRSC's Zhang Xiaojun says police have determined these reports are false.

"I want to remind the mass media and news staffers to adhere to the accuracy of news and abide by your professional ethics. Stop publishing and spreading groundless rumors and information. We would prefer you work to tell people about the right information when it comes to the markets, so that the markets themselves will continue in a healthy path."

Meanwhile, the China Securities Finance Corporation, the exclusive government-run lender for margin trading in China, is being bolstered with more capital, going from 24-billion yuan to 100-billion.

People's Bank of China governor Zhou Xiaochuan has also issued a statement in an attempt to reassure the markets, saying the PBOC plans to "hold fast" so as not to allow any systemic risks to China's overall economy.

The China Securities Regulatory Commission is demanding more accurate media reporting connected to the downturn of the A-share market.

The call follows a series of online reports which have suggested a number of traders have killed themselves and their families.

The CRSC's Zhang Xiaojun says police have determined these reports are false.

"I want to remind the mass media and news staffers to adhere to the accuracy of news and abide by your professional ethics. Stop publishing and spreading groundless rumors and information. We would prefer you work to tell people about the right information when it comes to the markets, so that the markets themselves will continue in a healthy path."

Meanwhile, the China Securities Finance Corporation, the exclusive government-run lender for margin trading in China, is being bolstered with more capital, going from 24-billion yuan to 100-billion.

People's Bank of China governor Zhou Xiaochuan has also issued a statement in an attempt to reassure the markets, saying the PBOC plans to "hold fast" so as not to allow any systemic risks to China's overall economy.