China’s central bank pledges stability in capital markets amid global sell-off

2026.03.19 13:50 Governor of the People’s Bank of China, Pan Gongsheng, speaks during a press conference on the sideline of the National People’s Congress in Beijing on March 6, 2026. Photo: AP China’s central bank named the continued stability of the country’s capital markets as a priority for 2026, a goal taking on greater significance as global markets are tested by the reverberations of the escalating US-Israel war on Iran. The People’s Bank of China designated the stability of stock, bond and foreign exchange markets as one of its “major tasks” for the year, according to a readout from a high-level meeting hosted by bank governor Pan Gongsheng on Wednesday. The bank also vowed to “resolutely safeguard” the markets’ stable operation. Published on Thursday, the statement arrived at a turbulent moment for Chinese equities. By market close that day, the benchmark Shanghai Composite Index had dropped 1.39 per cent – hovering just above the 4,000-point mark – with nearly 5,000 stocks on mainland China’s exchanges ending the day at a loss. The domestic sell-off mirrored a broader retreat in global markets, where escalating conflict in the Middle East has fuelled a sharp spike in crude oil prices and triggered a sweeping correction in US equities. Investor concerns are high over the long-term effects of the regional war as it enters its third week, particularly those related to the global energy trade and inflationary stability. “For all central banks, there can be an adverse scenario where a more persistent supply shock feeds through to underlying inflation while still weighing on demand,” said Jennifer McKeown, chief global economist at Capital Economics, in a note on Tuesday. She noted that a gradual tightening of policy, complemented by targeted fiscal support for households and firms, is typically the most appropriate way to anchor inflation expectations without further suppressing economic demand. The bank emphasised in its Wednesday meeting that maintaining a “f

原文链接: 南华早报