China's top securities regulator has pledged to continue reforming the financial market, and promote opening-up and innovation to stabilize and boost market confidence.
Vice Premier Liu He, regarded as China's financial tsar, led a coordinated effort with the country's central bank and financial regulators on Friday to stem its worst stock market rout in three years, and extended a lifeline to businesses battered by a liquidity squeeze.
The Dow Jones Industrial Average .dji fell 1.27 percent, the S&P 500 .spx lost 1.44 percent and the Nasdaq Composite .ixic dropped 2.06 percent.
The Shanghai Composite has already fallen 30% in 2018, amid fears about the economy and trade war threats. "Trade frictions between China and the US increase downside risk to China's growth outlook, but their near-term effects will be smaller than headlines suggest".
"Frankly, the psychological impact is bigger than the actual impact", he said. The U.S. government on Wednesday refrained from naming China as a currency manipulator in a twice-yearly Treasury department report.
The talks between Washington and Beijing are now on ice.
China's leadership previously put more emphasis on structural reforms and monetary tightening than on economic growth in an attempt to curtail corporate debt expansion and avoid a bursting of asset-inflated bubbles at home.
Economists expect China's full-year growth to come in at 6.6 percent this year, which would meet the government's forecast of 6.5 percent. That could limit Beijing's room to maneuver when negotiating with the USA, whose economy is growing robustly. With this third round of tariffs, the United States is now imposing double-digit tariffs on around half of the products it imports from China each year.
On a quarterly basis, GDP in the third quarter grew 1.6 per cent, compared with growth of 1.8 per cent in April-June, the National Bureau of Statistics said. He predicts the slowdown will bottom out around the middle of next year.
China's consumer price index rose 2.5 percent from the previous year in September, up from a 2.3 percent climb in August, marking the sharpest gain in February. "If there was no trade war, Chinese companies would be far more optimistic about 2019". However, such steps could further exacerbate the country's debt problems.
As the depressing growth figures emerged, top Chinese economic and financial officials rendered a unique synchronized trial to relax investor's disturbance. One bright spot was retail sales, which grew 9.2 percent in September, beating economists' expectations.
Apart from external factors, China's economic restructuring has also had an inevitable effect on the stock market, according to Liu.
Australian shares .axjo were down 0.6 percent, while Japan's Nikkei stock index .n225 was 1.7 percent lower.
"There are increasing uncertainties about the future trends in the housing market", Xia said. Mr. Hu says export growth will decelerate to between 5% and 10% in the coming months.
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