- China has banned major institutional investors from selling stocks at the open and close of trading, aiming to stabilize the volatile stock market. This is the latest government intervention after a selloff.
- The ban was ordered by the China Securities Regulatory Commission and its new Chairman Wu Qing. The CSRC has also created a task force with stock exchanges to monitor short selling.
- In a related move, China froze accounts of a major quant fund for 3 days after it rapidly sold $360 million in shares in one minute, disrupting trading. The fund will be barred until Feb. 22.
China has banned major institutional investors from reducing equity holdings at the open and close of each trading day, part of the government’s forceful attempt to prop up the nation’s stock market.
China Securities Regulatory Commission Issues Ban
The order from China’s securities watchdog was recently delivered to major asset managers and brokerages. The CSRC, led by its newly appointed Chairman Wu Qing, has also created a task force with stock exchanges to monitor short selling.
Ban Aims to Stabilize Volatile Market
The ban on net selling aims to stabilize China’s volatile $8.6 trillion stock market. It is the government‘s latest attempt to intervene in the market after a selloff this year.
Quant Fund Accounts Frozen for Massive Selloff
In a related move, China’s stock exchanges froze accounts of a major quant fund for 3 days after it rapidly dumped $360 million in shares within one minute, disrupting trading. The fund, Ningbo Lingjun Investment Management Partnership, will be barred from trading until Feb. 22.
Death Sentence for Australian Writer Yang Hengjun
Australian writer Yang Hengjun said he won’t appeal the suspended death sentence imposed on him by a Chinese court in February. Yang’s family said they support his decision, citing distrust in China’s legal system and Yang’s poor health. The ruling has strained Australia-China relations.
