Shanghai Bourse Vows Market Stability Before CPC Congress

The Shanghai Stock Exchange (SSE) vowed over the weekend to ensure market stability ahead of this year's politically critical 20th Party Congress, saying it will "resolutely" prohibit massive and quick fluctuations in capital markets, according to Samuel Shen and Brenda Goh for Reuters.

Photo Insert: The Shanghai Stock Exchange

The bourse will also help stabilize economic development by actively supporting coronavirus control and the return to work, and will manage and shape market expectations in a positive direction, according to a statement issued on the SSE's 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 a statement issued following an internal SSE meeting last week.

Chinese President Xi Jinping is largely expected to win a historic third term as leader of the Communist Party of China (CPC) at the party's annual session later this year.

The SSE also stated that it would make thorough preparations to broaden reforms of the initial public offering process, and that it would bear political responsibility for preventing and resolving financial risks.

The Shanghai Composite Index (SSEC) has recovered nearly 14 percent from its low point this year, which slumped on April 27, although it is still down about 10% for the year.

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