China share market fall partly due to panic: regulator

Reuters News
Posted: Jul 31, 2012 9:33 PM
China share market fall partly due to panic: regulator

SHANGHAI (Reuters) - The fall in China's stock markets, which saw the Shanghai index slumping to a 3-1/2-year low, is partly driven by panic, the country's securities regulator said, adding that pessimism over a slowdown in the domestic economy may have been overdone.

The China Securities Regulatory Commission (CSRC) said Chinese stocks still have very good investment value, with the average dividend rate rising in recent years to be nearly on par with those in developed markets, state-run Xinhua reported late on Tuesday, citing an unidentified official from the commission.

The comments mark Beijing's latest efforts to boost investor confidence as worries about economic slowdown have roiled share markets.

The large-cap focused CSI300 index of companies in Shanghai and Shenzen as well as the Shanghai Composite fell more than 5 percent in July, bringing their losses to more than 11 percent since the beginning of June despite two interest rate cuts and steps from Beijing to boost investor confidence.

The CSRC official also encouraged listed companies with strong capital to buy back their shares.

(Reporting by Fayen Wong and Ruby Lian; Editing by Jacqueline Wong)