BEIJING (Reuters) - China’s securities regulator said on Friday that recent falls in Chinese stock markets were just reversing unwarranted gains after a strong run-up and that the economy was showing clearer signs of stabilizing despite the fall.
“It’s a self-adjustment of the market after earlier excessive gains,” the China Securities Regulatory Commission’s spokesperson Zhang Xiaojun said at the regulator’s weekly news briefing.
“Recently, there has been more volatility in the stock market. That requires all sides to treat it rationally.”
The comments came just after Chinese bourses fell more than 7 percent in a day. [.SS]
Since last week, China stocks have posted some of their worst losses in seven years, as investors took flight amid increasing signs the country’s eight-month-long bull run is running out of fuel.
Zhang said the CSRC would continue to clamp down on irregularities in margin trading and that market liquidity was generally ample.
“Despite the recent falls, reform dividends still exist and liquidity is overall abundant, and the trend for the economy to stabilize has become increasingly conspicuous,” Zhang said.
Reporting by Zhang Xiaochong and Kazunori Takada; Writing by Brenda Goh and Lu Jianxin; Editing by Will Waterman