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China Imposes Restrictions on Large Investors to Stabilize Stock Market: Bloomberg

– China restricts large investors

Published: February 21, 2024, 2:37 p.m

The index of major companies in Shanghai and Shenzhen fell 6.3% in January to a five-year low.

Bild: Qilai Shen/Bloomberg

According to a media report, the Chinese stock market regulator is restricting institutional investors. The background was an attempt to stabilize the recently stricken market, the Bloomberg news agency reported on Wednesday, citing people familiar with the matter.

Large brokers and asset managers are therefore not allowed to sell shares in the first and last 30 minutes of trading. Some brokers have also been asked to recall loans to customers for bets on falling prices – or so-called short sales. However, hedge funds should not place concentrated sell orders.

The Chinese stock exchange authority CSRC has been trying to stabilize the stock market in the People’s Republic for some time. The index of major companies in Shanghai and Shenzhen fell 6.3% in January to a five-year low. The background was the halting recovery of the world’s second largest economy despite numerous government measures. In February, following initial measures by the CSRC, the stock market barometer embarked on a recovery course and advanced by around 12%.

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REUTERS

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2024-02-22 07:20:47
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