ROILO GOLEZ, Philippine National Security Adviser (2001-2004). The world and the Philippines as Roilo Golez sees it. With focus on national security, geopolitics, geo-security, economics, science and government.
Saturday, July 4, 2015
China is stepping in to try and save its flailing stock market.,
China is stepping in to try and save its flailing stock market.
According to a Bloomberg report on Saturday, officials are suspending Initial Public Offerings (IPOs) – as many as 28 on the Shanghai and Shenzhen stock exchanges – to deal with the tumble in stocks.
Stopping new companies from going public in IPOs may reduce the flow of cash from existing stocks, Bloomberg notes.
There was no information on how long this ban would last.
An earlier report indicated that Chinese officials also created a "market-stabilization fund" that will be supported by about 21 Chinese brokerages, who have pledged to buy at least 120 billion yuan ($19.3 billion) in shares.
But as Bloomberg notes, that amount is small when compared to the $2.4 trillion that vanished from Chinese stocks in the last three weeks.
Senior government, central bank, and regulatory officials met Saturday to discuss how to address the stock market crash.