Reports that China is considering curbs on stock speculation, in order to foster steady gains.
- China’s financial regulators are considering a number of cooling measures for the stock market, including the removal of some short selling curbs, and adding options to dampen speculative trading.
China’s regulators are considering new measures to curb speculation after a $1.2 trillion rally since August. The Shanghai Composite is at a 10-year high, while the CSI 300 has risen more than 20% from this year’s low.
Regulators have:
-
Instructed banks to probe illegal credit fund use for stock investments.
-
Told brokerages not to aggressively market 24-hour account-opening services (retail account openings surged 166% y/y in August).
-
Warned social media platforms against hyping bullish content or stock-related milestones.
-
Officials pledged severe punishment for violations or illegal stock tips; the CSRC has not commented publicly.
This is taking some bids out of CNH.
This article was written by Eamonn Sheridan at investinglive.com.
