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| China’s Crackdown on Financial Markets Gets Top-Level Support | China’s Crackdown on Financial Markets Gets Top-Level Support |
| (about 11 hours later) | |
| HONG KONG — President Xi Jinping of China called for more measures to protect stock market investors after meeting with financial regulators, the state news media said on Tuesday, signaling top-level support for a national campaign to crack down on market manipulation and to increase transparency. | |
| Xu Xiang, the billionaire owner of a Chinese investment firm who is sometimes compared to Carl C. Icahn, was detained on suspicion of insider trading on Nov. 1 and has been held incommunicado. In the days since, Chinese government officials appear to have broadened their investigation and adopted new regulatory measures. | |
| China Securities Journal, a semiofficial Chinese publication, said on Tuesday that public security agencies had frozen accounts totaling 4.3 billion renminbi, or about $675 million, that belong to a woman whom the Chinese news media have identified as Mr. Xu’s mother. | China Securities Journal, a semiofficial Chinese publication, said on Tuesday that public security agencies had frozen accounts totaling 4.3 billion renminbi, or about $675 million, that belong to a woman whom the Chinese news media have identified as Mr. Xu’s mother. |
| Separately, regulators raided several Chinese mutual fund companies late Monday, carting off the laptops of managers and analysts for further study, said Hao Hong, chief strategist at Bank of Communications International. | |
| The detention of Mr. Xu, who was detained by the police in an operation that involved closing a 22-mile bridge, “was China firing a warning shot across the market,” Mr. Hong said. | The detention of Mr. Xu, who was detained by the police in an operation that involved closing a 22-mile bridge, “was China firing a warning shot across the market,” Mr. Hong said. |
| Calls to Mr. Xu’s company, the Shanghai-based Zexi Investment, were not answered after working hours on Tuesday. The company’s website offered no information about Mr. Xu. | Calls to Mr. Xu’s company, the Shanghai-based Zexi Investment, were not answered after working hours on Tuesday. The company’s website offered no information about Mr. Xu. |
| The Chinese leader presided over a meeting on Monday of the Communist Party’s leading group on financial issues. State news media said that he had been joined by three of the six other members of the standing committee of the Politburo, the most powerful body in China’s system. | The Chinese leader presided over a meeting on Monday of the Communist Party’s leading group on financial issues. State news media said that he had been joined by three of the six other members of the standing committee of the Politburo, the most powerful body in China’s system. |
| Summarizing Mr. Xi’s speech, the state news media said that the president had called for stock markets to be better regulated so that investors are treated fairly. China’s stock markets have long had a reputation for chronic insider trading and other abuses. | Summarizing Mr. Xi’s speech, the state news media said that the president had called for stock markets to be better regulated so that investors are treated fairly. China’s stock markets have long had a reputation for chronic insider trading and other abuses. |
| “We must prevent and ease financial risks,” the official news agency Xinhua cited Mr. Xi as saying. “Accelerate the formation of stock markets that have full financing functions, robust institutions, effective market supervision, and full protection of investors’ rights and interests.” | “We must prevent and ease financial risks,” the official news agency Xinhua cited Mr. Xi as saying. “Accelerate the formation of stock markets that have full financing functions, robust institutions, effective market supervision, and full protection of investors’ rights and interests.” |
| Xinhua reported on Friday that Chinese regulators planned to lift a moratorium on new stock market listings before the end of the year, as the Chinese stock market is showing tentative signs of recovery after a swoon over the summer. The Shanghai Stock Exchange has also begun looking at ways to limit how long companies can suspend trading of their shares. Monthslong halts have infuriated many investors, who find themselves unable to dispose of stakes when they need cash. | Xinhua reported on Friday that Chinese regulators planned to lift a moratorium on new stock market listings before the end of the year, as the Chinese stock market is showing tentative signs of recovery after a swoon over the summer. The Shanghai Stock Exchange has also begun looking at ways to limit how long companies can suspend trading of their shares. Monthslong halts have infuriated many investors, who find themselves unable to dispose of stakes when they need cash. |
| The concern over the stability of financial markets coincides with new indications of China’s economic doldrums. Consumer price data released on Tuesday was weaker than expected, and trade figures on Sunday showed persistent weakness in demand. Economic growth has slipped below 7 percent. | The concern over the stability of financial markets coincides with new indications of China’s economic doldrums. Consumer price data released on Tuesday was weaker than expected, and trade figures on Sunday showed persistent weakness in demand. Economic growth has slipped below 7 percent. |
| But one government official pointed on Tuesday to an economic dividend from the recently announced decision to relax China’s “one-child” policy. | But one government official pointed on Tuesday to an economic dividend from the recently announced decision to relax China’s “one-child” policy. |
| Allowing married couples to have two children will most likely increase the number of entrants into the labor market and reduce the proportion of older people dependent on others for care, Wang Pei’an, a vice minister of the National Health and Planning Commission, told a news conference in Beijing. The net long-term effect could lift economic growth rate by about 0.5 of a percentage point, Mr. Wang said. | Allowing married couples to have two children will most likely increase the number of entrants into the labor market and reduce the proportion of older people dependent on others for care, Wang Pei’an, a vice minister of the National Health and Planning Commission, told a news conference in Beijing. The net long-term effect could lift economic growth rate by about 0.5 of a percentage point, Mr. Wang said. |
| Until now, most urban couples have been allowed only one child, although it has been common for rural couples to have two or more children. Mr. Wang said that the relaxation of rules governing family size would bring more than 30 million new entrants into the labor force by 2050, and that the proportion of older people in China’s total population would be reduced by about 2 percentage points. In China, the term elderly typically refers to those who are 65 or older. | Until now, most urban couples have been allowed only one child, although it has been common for rural couples to have two or more children. Mr. Wang said that the relaxation of rules governing family size would bring more than 30 million new entrants into the labor force by 2050, and that the proportion of older people in China’s total population would be reduced by about 2 percentage points. In China, the term elderly typically refers to those who are 65 or older. |
| Experts agree that the new policy will bring an additional 17 million births by about 2020, said Yang Wenzhuang, another health and family planning official at the news conference. | Experts agree that the new policy will bring an additional 17 million births by about 2020, said Yang Wenzhuang, another health and family planning official at the news conference. |
| “In the near term, it has a direct boost,” Mr. Yang said, noting that the changed policy would help companies that sell products for infants and mothers. “In the longer term, research from the Academy of Social Sciences has shown the impact on the potential growth rate will be about 0.5 percent. By about 2050, the population born from full implementation of the two-child policy will have become a very high-quality labor force.” | “In the near term, it has a direct boost,” Mr. Yang said, noting that the changed policy would help companies that sell products for infants and mothers. “In the longer term, research from the Academy of Social Sciences has shown the impact on the potential growth rate will be about 0.5 percent. By about 2050, the population born from full implementation of the two-child policy will have become a very high-quality labor force.” |