The fluctuations in A-share market on Tuesday were mainly affected by emotions, said Yi Gang, governor of the People’s Bank of China, responding to the 3.78% one day decline of the Shanghai Composite Index, Shanghai Securities Journal reported.
Yi urges investors to stay calm and rational, saying that ups and downs are expected in any market.
Yi is “full of confidence” with China’s capital market as the economic fundamentals remain sound. The resilience of economic growth has increased, and the total supply and demand have become more and more balanced.
This year, the Chinese yuan is one of the few currencies that have appreciated against the US dollar, Yi added.
He also promises that the central bank will attach great importance to the impact of external shocks.
“We will proactively make relevant policies, comprehensively use various monetary policy tools, maintain a reasonable and stable liquidity, grasp the strength and tempo of structural deleveraging, promote steady economic health, and prevent systemic financial risks,” said Yi.