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373883
Wed, 07/08/2015 - 15:29
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China’s stock market decline poses no risks to Russian economy - VTB head Kostin

UFA, July 8. /TASS/. China’s stock market decline poses no risks to the Russian economy, head of VTB Bank Andrei Kostin told TASS. "There are no risks. This site is closed for us, we don’t work there," - he said. "In my opinion, there was an overheating there /on the Chinese stock market - TASS/ because of financial leverage deals. The market was growing too fast," - Kostin said ahead of the BRICS summit in Ufa. "I think what is now going on is the result of changes in policy of supervisory bodies, the People’s Bank /of China - China’s Central Bank - TASS/ which began to calm down the market. There is no tragedy at all," - he said. Shanghai Stock Exchange Composite Index fell by 34% in less than a month from 5,178.9 on June 12 after the investors got concerned about financial "bubbles" due to liquidity oversupply. Shenzhen Component fell by almost 40%. Chinese stock indexes continue to decline, despite a number of measures approved by the authorities and stock brokers. In particular, on June 27, the People’s Bank of China declared the reduction of interest rates and reserve requirements. On July 4, China’s largest brokerages offices agreed on measures to stabilize the exchange market. China’s committee for control over national securities is now checking the market for possible manipulations by the players who are interested in share prices decline. Read more

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