Chinese bank stocks up on signs of moderate reform
CBRC comments and PBOC role in oversight stokes industry optimism
Chinese banks led gains in Hong Kong on Wednesday, after China Banking Regulatory Commission (CBRC) Vice Chairman Wang Zhaoxing’s comments on Tuesday that financial risk is “under control” and that authorities will regulate banks’ behavior at a reasonable pace.
At the same time as efforts will continue to tackle risks, the CBRC will take into account “macro financial stability conditions,” when addressing concerns, Wang said.
The commission will “systematically ensure the intensity and pace of enforcing policy, […] strengthen coordination and cooperation between regulatory agencies and local governments, and ensure we prevent ‘risk stemming from addressing risk,’” Wang added.
The comments come as reports revealed that Beijing will discuss the creation of a new office in the People’s Bank of China which would take a leadership role in coordinating financial system regulators.
Banks were top gainers on the Hang Seng index Wednesday; ICBC (+3.39%), Bank of China (2.46%), China Construction Bank (+2.59%), Bank of Communication (+1.61%)