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China's efforts to prop up its ailing stock market

Published 02/06/2024, 10:16 PM
Updated 02/07/2024, 06:46 AM
© Reuters. A man sits in front of a board showing market information at a securities brokerage house in Beijing, China August 5, 2019. REUTERS/Thomas Peter
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(Reuters) -Chinese shares rose on Wednesday, adding to their largest single-day gains in two years a day earlier, as authorities ramped up efforts to restore confidence and stabilise the country's battered markets.

The benchmark Shanghai Composite advanced 1.4% on Wednesday, while the blue-chip CSI 300 Index was up 1%, but were still down roughly 5% and 2.6%, respectively, year-to-date. [.SS]

Following is a list of these policy moves and measures:

** Feb 7, 2024

China replaces CSRC head Yi Huiman with Wu Qing.

** Feb 6, 2024

President Xi Jinping was set to discuss China's stock market with financial regulators, Bloomberg News reported, citing unnamed sources.

** Feb 6, 2024

China's securities regulator said it would suspend brokerages from borrowing shares for lending and cap the size of the so-called securities re-lending business, as part of efforts to curb short-selling.

** Feb 6, 2024

China state fund Central Huijin Investment said it would further increase investment in Chinese stock exchange traded funds (ETFs) and was determined to safeguard the stable operation of China's capital markets.

** Feb 5, 2024

China's securities regulator said it would tighten scrutiny of margin financing, malicious short selling and seek to ward off risks involving pledged shares.

The regulator will guide brokerages to give investors more time to answer margin calls to ease downward market pressure.

** Feb 5, 2024

Chinese brokerages, including state-owned China International Capital Corp (CICC), have restricted the amount of cross-border swap transactions domestic investors can undertake, sources told Reuters.

** Feb 5, 2024

China's securities regulator said it will closely monitor and take forceful measures to prevent risks from pledged shares as stock market hit five-year lows.

** Jan 31, 2024

China's "national team" of state-backed investors appeared to be supporting stuttering equity markets.

** Jan 28, 2024

China's securities regulator said it will fully suspend the lending of restricted shares from Jan. 29.

** Jan 24, 2024

China's central bank announced a deep cut to bank reserves, in a move that will inject about $140 billion of cash into the banking system and send a strong signal of support.

** Jan 23, 2024

Policymakers were seeking to mobilise about 2 trillion yuan ($278 billion), mainly from offshore accounts of state-owned enterprises, as part of a stabilisation fund to buy shares onshore through the Hong Kong exchange link, Bloomberg News reported, citing unnamed sources.

** Jan 22, 2024

China's cabinet 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.

** Jan 5, 2024

Beijing informally asked some money managers in China to prioritise the launch of equity funds over other products, sources told Reuters.

** 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. 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 ETFs and would continue to raise ETF holdings.

** 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.

** Sept 1, 2023

China's securities regulators tightened scrutiny over programme trading, seeking to better regulate computer-generated algorithms in stock trading.

** Aug 28, 2023

China halved the stamp duty on stock trading.

** Aug 27, 2023

China's securities regulator said it would slow the pace of IPOs and further regulate share reductions. Stock exchanges in China also cut margin financing requirements.

** Aug 24, 2023

China's securities regulator said 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

© Reuters. A man sits in front of a board showing market information at a securities brokerage house in Beijing, China August 5, 2019. REUTERS/Thomas Peter

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 sector in an effort to reduce costs to investors.

($1 = 7.1830 Chinese yuan)

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