'Don't Panic,' Say China's State Media, Amid Ongoing Market Mayhem
The ruling Chinese Communist Party used its official media outlets to crank up positive propaganda surrounding the country's plummeting financial markets on Monday after a government intervention over the weekend, amid warnings that online "rumor-mongers" will be detained.
"Firm confidence instead of panic should be held for China's capital market as market risks are within control and fragile market sentiment will be reversed," the party's official People's Daily newspaper said in an editorial on Monday.
In a bid to reassure investors that tumbling share prices are a top priority for the government, the paper said that China has "sufficient tools" to stem the carnage, that saw the benchmark Shanghai Composite Index fall by nearly 30 percent in the past three weeks, with some 12 percent of its value lost last week.
"China has sufficient tools to bring the stock market back to sound footing as the economy keeps improving and the liquidity remains abundant," the People's Daily said.
It said the government is now engaged in "emergency and supportive measures to stabilize market sentiment."
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