China vows financial stability with markets bracing for selloff

As concerns mount over the economic impact from the new coronavirus that has infected over 11,700 people and killed 259 so far, Chinese policymakers including the central bank have ramped up efforts to shore up the financial system and capital markets which are bracing for a sell-off on Monday when markets re-open.

BEIJING: Chinese regulators unveiled a slew of measures to ensure stability of its US$45 trillion financial system as the nation stepped up the fight against the spreading virus.

The China Banking and Insurance Regulatory Commission will "suitably extend the grace period” for firms that have difficulty meeting the end-2020 deadline to comply with new asset management rules, CBIRC vice chairman Cao Yu said in an interview published on Saturday.

For insurers with ample solvency, the regulator will allow them to "appropriately raise their investment” in equities from the current limit of 30% of assets, Cao said.