Chinese authorities asked some mutual funds to avoid selling equities on a net basis a day after financial regulators announced a slew of measures to “invigorate capital markets and boost investor confidence.”
(Bloomberg) — Chinese authorities asked some mutual funds to avoid selling equities on a net basis a day after financial regulators announced a slew of measures to “invigorate capital markets and boost investor confidence.”
Stock exchanges issued the so-called window guidance to several large mutual fund houses, telling them to refrain for a day from selling more onshore shares than they purchased, according to the people who asked not to be identified discussing private information.
The China Securities Regulatory Commission, Shanghai Stock Exchange and Shenzhen Stock Exchange didn’t respond to requests seeking comment.
READ: China’s 5.5% Stock Rally Fizzles in Blow to Market Rescue Effort
China’s CSI 300 Index trimmed most of the gains in the afternoon session after rising as much as 5.5% at the open, showing lack of conviction even as authorities boosted efforts to woo back investors to one of the world’s worst-performing equity markets. The measures include a cut in the stamp duty on stock trades and curbs on share sales by major stakeholders.
Global investors sold into the rally, offloading a net 8.2 billion yuan ($1.1 billion) of mainland equities via trading links in Hong Kong on Monday.
READ: Global Investors Are Selling Onshore China Stocks Amid Rally
–With assistance from Zhu Lin.
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