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Shanghai bourse vows market stability

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    September 7, 2022 10:17 PM EDT

    Shanghai bourse vows market stability before Communist Party Congress

    The Shanghai Stock Exchange (SSE) vowed over the weekend to maintain market stability ahead of the politically significant 20th Party Congress later this year, saying it will "resolutely" prevent big and swift swings in capital markets.To get more shanghai stock market news, you can visit shine news official website.
    The bourse will also help stabilize economic growth by actively supporting control of the coronavirus and the resumption of work, and will manage and shape market expectations toward the positive side, the SSE said in a statement posted on its website on Sunday.

    "The SSE should fully understand the huge political significance of the 20th Party Congress, and effectively maintain stability of the capital market," according to the statement, published after the SSE held an internal meeting last week.

    Chinese President Xi Jinping is widely expected to secure an unprecedented third term as leader of the Communist Party during the congress later this year, which is held once every five years.
    The SSE also said it would make solid and detailed preparations to expand reforms of the initial public offering process, and will shoulder the political responsibility in preventing and resolving financial risks.

    The Shanghai Composite Index has rebounded roughly 14% from its low point this year hit on April 27, but is still down about 10% so far this year.The China stock market has finished lower in back-to-back trading days, retreating almost 30 points or 0.8 percent along the way. The Shanghai Composite Index now rests just beneath the 3,565-point plateau and it's looking at another soft start again on Monday.

    The global forecast for the Asian markets is broadly negative on fears of lockdown measures following the rapid spread of a new COVID variant. The European and U.S. markets were sharply lower and the Asian bourses figure to open in similar fashion.

    The SCI finished modestly lower on Friday following losses from the financial shares, resource stocks and properties.Among the actives, Industrial and Commercial Bank of China lost 0.43 percent, while Bank of China shed 0.32 percent, China Construction Bank fell 0.34 percent, China Merchants Bank tanked 2.57 percent, Bank of Communications sank 0.65 percent, China Life Insurance retreated 1.60 percent, Jiangxi Copper tumbled 1.80 percent, Aluminum Corp of China (Chalco) declined 1.50 percent, Yanzhou Coal plummeted 6.17 percent, PetroChina surrendered 2.05 percent, China Petroleum and Chemical (Sinopec) skidded 0.73 percent, Huaneng Power plunged 4.03 percent, China Shenhua Energy stumbled 2.90 percent, Gemdale slumped 2.01 percent, Poly Developments was down 1.40 percent and China Vanke dipped 1.20 percent.
    The sell-off on Wall Street followed reports a new coronavirus variant has been detected in South Africa. The news, which comes amid a surge in new Covid-19 cases in Europe, raised concerns the pandemic could continue to wreak havoc on the global economy.

    Crude oil prices plummeted on Friday, sending the most active crude futures contract to their biggest single-session fall this year as reports of the new coronavirus variant raised concerns about the outlook for energy demand. West Texas Intermediate Crude oil futures for December ended down $10.24 or 13 percent at $68.15 a barrel, the biggest single-session loss since April 2020.