Jan. 9 (Bloomberg) -- Chinese Premier Wen Jiabao’s call for measures to boost confidence in the nation’s stock market “will help” equities recover from a two-year slump, said the head of UBS AG’s China operations.
Wen called for reforming initial public offerings and improving companies’ dividend payouts, the Shanghai Securities News reported today, citing his comments at a National Financial Work meeting.
The outlook for China’s capital markets is “better,” David Li, UBS’s chairman and country head for China, said in an interview in Shanghai. He said Wen’s comments signal the government may take more measures to boost stocks, including allowing social security funds to buy equities. Funds may flow out of the property market and into stocks as the government isn’t showing any inclination to ease curbs in the real-estate industry because prices “are still high,” he said.
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