(Bloomberg) -- China has stepped up efforts this week to restore investor confidence after its initial moves to improve clarity around its regulatory clampdown, according to Morgan Stanley.
Beijing has announced new initiatives for its financial opening-up agenda, resumed Greater Bay Area reform after a two-and-a-half-year hiatus and reaffirmed support to private firms, analysts including Robin Xing wrote in a note Tuesday. Market participants are piling in with the Hang Seng Tech Index climbing more than 17% from its August low.
China’s securities regulator on Monday said it is studying measures to expand the scope of stock links with Hong Kong and London, while Beijing unveiled new work plans to grow the Greater Bay Area.
The People’s Daily newspaper-- a government mouthpiece -- ran a front-page editorial on Wednesday seeking to ease concern that new regulations will hurt foreign investors.
Furthermore, Vice Premier Liu He’s speech on Monday supporting private businesses mirrored the top leadership’s talks in late 2018, “which marked the shift from regulation tightening to meaningful policy support” during the time, said the authors of the Morgan Stanley report.
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