China’s securities regulator will meet market participants on Monday to review steps for stabilizing equity markets. The talks follow a sharp sell-off that wiped out nearly 10 trillion yuan, or about 1.48 trillion dollars, in value over two weeks. State-backed investors have also increased purchases to limit further price drops. The China Securities Regulatory Commission has invited financial industry representatives to share views on policies that could aid steady capital market growth. Additional sessions with brokerages, fund managers and listed companies are planned in coming days to gather more input. Last week Chinese shares fell over 5 percent. Sentiment weakened due to worries that a major chipmaker’s large initial public offering could reduce liquidity, combined with a global semiconductor sell-off and Middle East tensions. Technology stocks led the decline, and Shanghai’s STAR Market index has dropped about 25 percent from its early July high. Central government investment firm China Reform Holdings said it bought 50 billion yuan in equities and intends to add more holdings over time. China Chengtong Holdings separately purchased nearly 10 billion yuan in shares. The moves reflect official efforts to rebuild confidence after recent sharp corrections.
