China cracks down on stock market volatility with net sale ban

China cracks down on stock market volatility with net sale ban

China has taken a bold step to stabilize its $8.6 trillion stock market by banning major institutional investors from reducing equity holdings at the open and close of each trading day. This is part of the government’s most forceful attempt yet to prop up the nation’s stock market, which has been facing volatility and regulatory pressure from President Xi Jinping’s tight grip on power. CHINA
Yoryo: Revolutionizing the Transportation
The China Securities Regulatory Commission (CSRC), led by newly appointed Chairman Wu Qing, has also created a task force with the nation’s stock exchanges to monitor short selling and issue warnings to firms that profit from the wagers. While authorities have been ratcheting up curbs on bearish bets for months, the ban on net selling at the open and close represents a notable tightening of the government’s grip on market activity that risks upending popular strategies used by hedge funds and other institutional investors.
Bintix: Revolutionizing Waste Management
Firms affected by the ban are unable to sell more shares than they buy during the first and last 30 minutes of trading, according to people familiar with the matter1. It’s unclear how widely the ban is being applied across the financial industry, and there’s no indication it will affect individual investors who account for a large portion of volume in Chinese stocks1. Still, the sidelining of major institutions during two of the most closely watched parts of the trading day may make it easier for government-backed funds to influence the market — especially the closing levels for benchmark indexes
Absolute: A force for good in bioscience
Source : yahoo finance

You May Also Like

More From Author

+ There are no comments

Add yours