(Bloomberg) — China’s securities regulator is gradually increasing the frequency of its interactions with banks around the world, according to people familiar with the matter, with the aim of gathering views on recent economic stimulus measures. Consultations that used to be held quarterly have been stepped up to once a week or occasional inquiries in some cases.
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The regulator has spent the past few weeks analyzing daily capital flows by global banks to understand economic outlook revisions and foreign investment trends, the people said, asking not to be identified because deliberations are private. He is particularly interested.
Investors reacted mixedly to China's latest stimulus package, which partially relieved local government debt but fell short of the strong fiscal support many had expected. . Regulators typically hold roundtables with foreign banks primarily operating in the country, mostly quarterly, so the effort to gather data and feedback will help the Chinese government move toward economic recovery. This shows that there is a heightened sense of urgency.
In talks with one of the banks, the regulator sought advice on foreign sentiment and how to increase appetite for Chinese assets, one of the people said. In a series of exchanges, the two banks proposed holding an international roadshow to clarify new policies and improve communication with the market.
The China Securities Regulatory Commission did not respond to a request for comment.
At an unusual joint press conference in late September, China's three major financial regulators announced plans to improve the $18 trillion economy, including lower interest rates, more support for stock and real estate markets, measures to reduce local debt risk, and financial deregulation. announced a wide-ranging policy package to support Recapitalization of major state-owned banks.
In response to this move, many economists revised their economic growth forecasts upward, and Chinese stocks also rose. Still, enthusiasm quickly waned as investors waited to see whether authorities would roll out even larger fiscal support. Donald Trump's election victory may lead to an increase in tariffs on China, increasing uncertainty for the Chinese economy.
At the same time, global banks have struggled to expand in mainland China since China fully opened its financial markets to foreign institutions. Many companies are putting the brakes on expansion plans but maintaining a presence when economic growth and trade accelerates.
