China apparently wants to prevent a stock market slide ahead of the Communist Party Congress, scheduled to begin on October 16. Securities regulators recently instructed several fund managers and brokers not to engage in massive stock sales in the run-up to the CP Congress to avoid large market swings, according to a Reuters report. The Shanghai and Shenzhen stock exchanges had issued verbal instructions as part of unofficial guidelines, it said. “They asked (us) to avoid abnormal trading activities, including massive sell-offs and buy-ins. Basically, it’s a move to stabilize the market,” the agency quoted an unnamed source as saying Tuesday. The matter reportedly is “politically sensitive.”
Continue reading now
Get 30 days of free access to the Professional Briefing to read these and more quality news every day.
Are you already a guest at the China.Table? Log in now