China’s stock market has almost completed its correction after a bubble formed in the first half of the year, according to remarks to G20 finance ministers by Zhou Xiaochuan, governor of China’s central bank.

Sharp drops in the country’s equities after a debt-fuelled rise earlier in the year have spooked domestic and international investors and forced Beijing to launch a raft of policies aimed at stemming further losses. Chinese stock markets are down nearly 40 per cent from their June peak.

In remarks at the G20 in Turkey, the People’s Bank of China quoted Mr Zhou as saying: “At present, the exchange rate of the renminbi against the dollar is stabilising, the correction in the stock market is already mostly over and the financial markets show hope for stabilising.”