China’s securities regulator has sought to ease concerns among international investors and banks after tough new restrictions on private education companies sent shockwaves through markets, reported the Financial Times.
Regulators in Beijing held a call with executives from global investors, Wall Street banks and Chinese financial groups on Wednesday night, according to three FT sources. One of the people said there were about 12 attendees, including executives from BlackRock, Fidelity, Goldman Sachs and JPMorgan.
The call sought to reassure the groups after China issued an effective ban on the country’s $100 billion private tutoring industry at the weekend, which led to concerns of a broader regulatory crackdown on Chinese tech companies listed abroad.
One person briefed on the call hosted by the China Securities Regulatory Commission said it showed that the Chinese government was not “completely tone-deaf to international investors’ sentiment”, but added that it did not do much to assuage concerns. “These policies are not coming from the CSRC, they’re coming from much higher up. It’s clear there will be more to come, that’s obvious to everyone.”