39
[ad_1]
China will halt the lending of certain shares for short selling from Monday, the securities regulator announced on Sunday, in a move to support the country’s slumping stock markets.
Strategic investors won’t be allowed to lend out shares during agreed lock-up periods, Shanghai and Shenzhen stock exchanges said following the China Securities Regulatory Commission’s (CSRC) statement.
Authorities are taking measures following an alarming slide in Chinese stocks – the MSCI China Index has lost 60% from a February 2021 peak. Last October, limits were put on the lending of shares that executives and other key employees get in strategic placements, and other curbs were imposed. Since then, the outstanding value of stocks lent by strategic investors has dropped 40%, the CSRC said on Sunday.
The MSCI China gauge scored its first weekly gain of the year last week, trimming its loss for 2024 to about 7%, after the central bank announced an imminent reserve requirement ratio cut and plans for targeted stimulus.
Strategic investors won’t be allowed to lend out shares during agreed lock-up periods, Shanghai and Shenzhen stock exchanges said following the China Securities Regulatory Commission’s (CSRC) statement.
Authorities are taking measures following an alarming slide in Chinese stocks – the MSCI China Index has lost 60% from a February 2021 peak. Last October, limits were put on the lending of shares that executives and other key employees get in strategic placements, and other curbs were imposed. Since then, the outstanding value of stocks lent by strategic investors has dropped 40%, the CSRC said on Sunday.
The MSCI China gauge scored its first weekly gain of the year last week, trimming its loss for 2024 to about 7%, after the central bank announced an imminent reserve requirement ratio cut and plans for targeted stimulus.
[ad_2]
Source link
