China’s ruling Chinese Communist Party (CCP) has made significant changes in its securities regulator and implemented short-selling restrictions in response to the stock market crash. The move has sparked public anger, as investors express their frustration with the CCP’s handling of the situation.
China’s stock market has been in a state of meltdown since the beginning of the year, reaching its lowest points in years. This has greatly affected the confidence of both domestic and foreign investors, particularly amid China’s slumping economy. With an estimated 200 million Chinese investors in the market, many have taken to social media to voice their anger and seek help to protect their investments.
In a surprising move, the CCP replaced the chairman of the China Securities Regulatory Commission, Yi Huiman, with Wu Qing. This decision was made by the Central Committee of the CCP and its State Council. Observers noted that the lack of internal announcements from the CCP’s Organization Department before the public announcement indicates the urgency of the situation. It suggests that China’s financial market is in a state of crisis.
The new head of China’s securities regulator, Wu Qing, wasted no time in taking action. He imposed heavy fines and administrative punishment on technology companies and approximately 100 securities professionals. This demonstrates a strong response to the ongoing market volatility.
To prevent further decline in the Shanghai and Hong Kong stock indexes, the CCP has injected a significant amount of national funds into the stock market. Referred to as the “national team,” state-owned firms are playing a crucial role in rescuing the Chinese financial market. Despite these efforts, experts such as Frank Xie believe that the market will continue to fall due to a lack of investor optimism.
In an attempt to restrict short-selling and control the decline, the China Securities Regulatory Commission issued orders banning the selling of stocks and implementing other measures. However, this move has been met with criticism from investors who argue that it goes against market principles. The anger is further fueled by the fact that the majority of Chinese investors are hard-working individuals whose personal and family income heavily relies on their investments.
The implementation of these restrictions has led to a sense of despair among investors, as they face significant losses and potential bankruptcy. Unlike European and U.S. markets, where individual investors account for less than 20% of the market value, China’s market is dominated by individual investors, accounting for over 95%. Their limited endurance for market volatility makes them more vulnerable to the effects of a stock market crash.
Overall, the CCP’s leadership change in the securities regulator and the implementation of short-selling restrictions have sparked public anger in China. With the stock market meltdown continuing, investors are expressing their frustration and seeking help to protect their investments. The ongoing crisis highlights the fragility of China’s financial market and raises concerns about the long-term stability of the economy.
 faces public anger as it implements short-selling restrictions and replaces the chairman of the China Securities Regulatory Commission in response to the stock market crash. With investors voicing frustration and seeking help, concerns about the long-term stability of China's financial market and economy are raised.){kind=link}