Macao China’s stock sells can be experiencing a make-or-break week or so after experts introduced an remarkable a number of steps with the saturday and sunday prevent a full stock current market crash which may put at risk with the second-largest overall economy.
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According to company filings to the exchanges Saturday evening, 10 companies will suspend IPOs on the Shanghai Stock Exchange and 18 will do the same at the Shenzen Stock Exchange.
China stocks had more than doubled in just 12 months even as the economy cooled and company earnings weakened, resulting in a market that even China’s inherently bullish securities regulators eventually admitted had become too frothy.
The sell-off is especially worrying because the bull market had been built on a mountain of speculative loans. Some analysts suggest total margin lending, both formal and informal, could add up to around 4 trillion yuan ($645bn).
BEIJING-More than two dozen companies in China are postponing initial public offerings and security companies are pledging more than $19 billion for a fund to stabilize the country’s free-falling stock market.
The 29-year-old man, surnamed Tian, was detained for “disorderly behaviour”, China Central Television said.
Repeated attempts by regulators over the last week to stabilise markets – including an interest rate cut, a relaxation of margin-lending rules and additional bank liquidity – have failed to reassure panicky investors so far.
Samuel Chien, partner of Shanghai-based hedge fund BoomTrend Investment Management Co, said he’s ready to pile into blue-chip stocks this week, betting the new steps would trigger a rebound.
The brokers pledged not to reduce any proprietary investments in the equity market as long as the Shanghai Composite Index stays below 4,500, the association said.
Calls by Bloomberg News to the press office of China’s State Council went unanswered outside regular business hours.
“Main indexes will rise. I have ample cash at hand, and surely will buy”. “Some stocks are still over-valued and continue to face huge pressure”. Another 69 fund firms said on Sunday they would do the same.
Executives, board members and controlling shareholders of more than 20 listed companies in China have announced plans to increase the amount of shares they hold in their own firms in an effort to cut their losses on the markets.
Since June 12, China’s Shanghai Composite and Shenzhen index are down 29% and 33% respectively.
The Securities Association of China said in a statement that it appreciated the brokers’ decision and asked all brokerages to view the economic situation and capital market in a correct way and take similar actions to underpin the ailing market.
For months, state-owned media had encouraged ordinary Chinese to load up on shares. Investors big and small took that as a government signal to buy.
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Meanwhile, the country’s rate of economic growth, while still robust by Western standards, has fallen to its lowest pace in a quarter century.
