China will halt the lending of sure shares for brief promoting from Monday, the securities regulator introduced on Sunday, in a transfer to assist the nation’s slumping inventory markets.
Strategic buyers will not be allowed to lend out shares throughout agreed lock-up intervals, Shanghai and Shenzhen inventory exchanges stated following the China Securities Regulatory Fee’s (CSRC) assertion.
Authorities are taking measures following an alarming slide in Chinese language shares – the MSCI China Index has misplaced 60% from a February 2021 peak. Final October, limits have been placed on the lending of shares that executives and different key workers get in strategic placements, and different curbs have been imposed. Since then, the excellent worth of shares lent by strategic buyers has dropped 40%, the CSRC stated on Sunday.
The MSCI China gauge scored its first weekly achieve of the 12 months final week, trimming its loss for 2024 to about 7%, after the central financial institution introduced an imminent reserve requirement ratio lower and plans for focused stimulus.
Strategic buyers will not be allowed to lend out shares throughout agreed lock-up intervals, Shanghai and Shenzhen inventory exchanges stated following the China Securities Regulatory Fee’s (CSRC) assertion.
Authorities are taking measures following an alarming slide in Chinese language shares – the MSCI China Index has misplaced 60% from a February 2021 peak. Final October, limits have been placed on the lending of shares that executives and different key workers get in strategic placements, and different curbs have been imposed. Since then, the excellent worth of shares lent by strategic buyers has dropped 40%, the CSRC stated on Sunday.
The MSCI China gauge scored its first weekly achieve of the 12 months final week, trimming its loss for 2024 to about 7%, after the central financial institution introduced an imminent reserve requirement ratio lower and plans for focused stimulus.
