2024-01-17 01:00:00
According to reports, China’s market regulator has instructed some institutional investors not to sell stocks listed in Shanghai and Shenzhen in an attempt to reverse the recent decline in A-shares.
Updated January 17, 2024 09:00 CST
According to reports, China’s market regulator has instructed some institutional investors not to sell stocks listed in Shanghai and Shenzhen in an attempt to reverse the recent decline in A-shares.
Market participants told the Financial Times that regulatory authorities have provided “window guidance” to some institutional investors, urging them not to net sell stocks on certain days.
The measures are aimed at reversing a decline in China’s benchmark CSI 300 index that began in the first week of 2024 and has fallen 4% so far this year and 20% over the past 52 weeks.
The China Securities Regulatory Commission, Shanghai Stock Exchange and Shenzhen Stock Exchange introduced similar selling restrictions in October last year following pressure from the central government, pushing the CSI 300 Index up 3% at the time, the report said.
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According to reports, China’s market regulator has instructed some institutional investors not to sell stocks listed in Shanghai and Shenzhen in an attempt to reverse the recent decline in A-shares.
Market participants told the Financial Times that regulatory authorities have provided “window guidance” to some institutional investors, urging them not to net sell stocks on certain days.
The measures are aimed at reversing a decline in China’s benchmark CSI 300 index that began in the first week of 2024 and has fallen 4% so far this year and 20% over the past 52 weeks.
The China Securities Regulatory Commission, Shanghai Stock Exchange and Shenzhen Stock Exchange introduced similar selling restrictions in October last year following pressure from the central government, pushing the CSI 300 Index up 3% at the time, the report said.
But at the beginning of the new year, these measures were relaxed for some small funds, leading to a sell-off in the Chinese market and exacerbating the decline of the CSI 300 Index at the beginning of the year.
Reports indicate that regulators have reintroduced these restrictions in an effort to stem recent declines.
MarketWatch has sought comment from the China Securities Regulatory Commission, Shanghai Stock Exchange and Shenzhen Stock Exchange.
As China’s government attempts to slow the stock market’s decline, investors are eyeing annual economic data to be released on Wednesday. The data is expected to show that China has achieved its 2023 economic growth target.
According to 58 economists surveyed by Archyde.com, China’s National Bureau of Statistics data will show China’s GDP growth of 5.2% in 2023, higher than the 5% growth target set by the Chinese government.
However, a Archyde.com survey shows that China’s economic growth is expected to slow to 4.6% in 2024 and 4.5% in 2025, which will increase the pressure on the Chinese government to introduce new stimulus measures to boost the economy.
(This article is translated from MarketWatch. MarketWatch is operated by Dow Jones, the parent company of The Wall Street Journal, but MarketWatch is independent from Dow Jones Newswires and The Wall Street Journal.)
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