China's stock exchange asks big fund managers to limit stock sales from early 2568, hoping to support the market

China's stock exchange asks big fund managers to limit stock sales from early 2568, hoping to shore up a slumping market

On January 6, 2568, Reuters news agency reported that China's main stock exchange asked some large mutual funds to restrict sales of shares early this year, sources said. As authorities try to calm a market that is entering a difficult period

At least four large mutual funds received calls from the Shanghai and Shenzhen stock exchanges on December 4, 31 and January 2567 and 2, 3, asking them to buy more shares than they sold each day.

The guidance comes as Chinese stocks started 2568 with sharp losses on concerns that U.S. President-elect Donald Trump will impose high tariffs on Chinese goods, adding pressure to an already sluggish economy.

The funds can sell shares, but if the total value of sales exceeds the value of purchases, they will have to add additional positions soon to fill the gap, according to advice from the exchange, one of the sources said, adding that “such advice tends to be consistent”, noting similar requests were made earlier this year.

The CSI 300 Index fell 2.9% on its first trading day of 2568, its worst start to a new year since 2559, when the benchmark index fell more than 5% last week.

And with two weeks to go before Trump is sworn in for a second term as US president, his threat to impose tariffs on a slew of Chinese goods has rattled the yuan, sending bond yields and stock prices on the mainland lower.

However, providing advice to investors from the stock exchange is just one of many measures the authorities have taken to stabilize sentiment.

In addition to the capital market support measures in recent months, the authorities have launched a total of 800,000 billion yuan worth of swap and re-lending programs for share purchases.

refer : reuters.com

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