(Reuters) – Chinese shares rebounded on Tuesday on a Bloomberg News report that said Chinese authorities are considering several measures to bolster the stock market.
Policymakers are seeking to mobilise about 2 trillion yuan ($279 billion), mainly from offshore accounts of state-owned enterprises, as part of a fund to buy shares, Bloomberg News reported, citing unnamed sources.
The China Securities Regulatory Commission (CSRC) did not respond to a Reuters request for a comment. The authorities have in the past few months put into place several measures to support markets which have slowed, but not stopped, the sell-off.
Following is a list of these policy moves and measures:
** Jan 22, 2024
China’s cabinet said it will take more forceful and effective measures to stabilise market confidence, state TV said, citing a meeting chaired by Premier Li Qiang.
The cabinet also said it will step up medium- and long-term fund injections in the capital market to strengthen stability, as well as promote healthy development of the market.
** Jan 5, 2024
Beijing informally asked some money managers in China to prioritise the launch of equity funds over other products, sources told Reuters, as authorities scrambled to revive the lagging stock market.
** Dec 1, 2023
State-owned China Reform Holdings Corp said it bought tech-focused index funds and would continue to increase holdings.
** Nov 27, 2023
Sources told Reuters that the Beijing Stock Exchange has de facto implemented a new policy that prevented major shareholders of companies listed on the bourse from selling stock.
** Nov 11, 2023
China Securities Regulatory Commission (CSRC) said banks, social security funds and other long-term investors are encouraged to invest in tech innovation bonds issued by SOEs controlled by the central government.
** Oct 30, 2023
An increasing number of Chinese listed companies unveiled share buyback and purchase plans in October, while major mutual fund house E Fund Management Co said it would invest in its own product.
** Oct 23, 2023
China’s state fund Central Huijin Investment said it had bought exchange-traded funds (ETFs) and would continue to increase ETF holdings in the future.
** Oct 14, 2023
China’s securities regulator said it would restrict securities lending businesses and tighten scrutiny on improper regulatory arbitrage.
** Sept 21, 2023
Sources told Reuters that regulators have started to probe some hedge funds and brokerages on quantitative trading strategies amid a growing outcry against a sector able to profit from share price falls and volatility.
** Sept 1, 2023
China’s securities regulators tightened scrutiny over programme trading, seeking to better regulate the use of computer-generated algorithms in stock trading.
** Aug 28, 2023
China halved the stamp duty on stock trading, in an attempt to boost the struggling market as a recovery sputtered in the world’s second-biggest economy.
** Aug 27, 2023
China’s securities regulator said it would slow the pace of IPOs and further regulated share reductions. Stock exchanges in China also cut margin financing requirements.
** Aug 24, 2023
China’s securities regulator said that it was encouraging medium and long-term investors, such as state pension funds and wealth management funds, to increase their equity investments.
** Aug 18, 2023
China’s securities regulator unveiled a package of measures including a proposal to cut trading costs, supporting share buybacks and encouraging long-term investment.
** July 10, 2023
More than a dozen major mutual fund companies in China cut fees in roughly 1,500 fund products as regulators started reforming fee practices in the $3.7 trillion industry in an effort to reduce costs to investors.
($1 = 7.1710 Chinese yuan)
(Reporting by Shanghai Newsroom; editing by Miral Fahmy)
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