As China aims for medium-high growth, continued efforts should be made to ensure a long and stable development of its capital market, said the article.
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China’s public security ministry is teaming up with the China Securities Regulatory Commission to investigate short selling as the government works to stem a stock plunge that has erased US$3.9 trillion in market value, Bloomberg News said, citing a report from the official Xinhua news agency.
The ban applies to “big” shareholders – defined as those with stakes of more than 5% – company directors, board supervisors and senior executives, the China Securities Regulatory Commission (CSRC) said.
Twenty-one Chinese brokerages transferred a total of over 128bn yuan into the accounts of state-owned China Securities Finance Corp, which provides margin financing services, the Shanghai Securities Journal reported yesterday. Banks will now be able to discuss redefining mortgage terms of share-secured loans that are due or adjusting collateral with their clients.
“Oil is being pressured on multiple fronts, and China’s equity wobble, the prospect of Iran’s re-entry to the market and low liquidity all add up to an extremely fraught environment”. The government agency charged with regulating China’s largest state-owned firms announced Wednesday that it had told them to stop selling shares and to buy more “in order to safeguard market stability”.
The central bank on Wednesday vowed to steady stock market and ensure that no systematic and regional financial risks will occur, providing support for the CSF to get sufficient liquidity. Iran’s determination to seal a nuclear deal with global powers to bring more of its crude to an oversupplied market and the restart of a key oil terminal in Libya also weighed on oil prices.
The Ministry of Finance vowed not to sell shares of listed companies amid “abnormal volatility” of stock market.
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・ Central Huijin Investment Ltd, the investment arm of the country’s sovereign wealth fund, has promised not to reduce its stock holdings.
