Chinese Premier Wen Jiabao has pledged to boost stock market confidence over the coming five-year period, Xinhua reported. Wen made the remarks at the two-day National Financial Work Conference that concluded Saturday. The meeting, held every five years, maps out development plans for the financial sector for the next five years.
The premier pledged to raise stock market confidence, and pledged to perfect the systems of IPO launching, delisting, and dividends allocation. The financial sector has responded positively to the proposals as an excessive emphasis on investment without due attention to a reward system has been a major problem for Chinese stocks.
China's stock markets have been bearish for a prolonged period of time, and are still recovering from the negative impact of the international financial crisis. The benchmark Shanghai Composite Index last Friday closed at 2163.39 points. Investors are closely monitoring how long the index can stay above their psychological mark of 2,000 points.