ICYMI – China imposes casual curbs on inventory gross sales to assist markets

Chinese language inventory exchanges have quietly imposed day by day limits on web share gross sales by hedge funds and huge retail traders, in keeping with 4 sources says Reuters, as authorities transfer to stabilise markets amid an escalating commerce battle with the U.S.

The gentle cap—set at 50 million yuan (approx. $6.eight million) per investor per day—is being enforced via verbal warnings from brokerages. Traders who exceed the restrict danger having their buying and selling accounts suspended, sources mentioned. A proper directive from the exchanges reportedly underpins the measure, however neither the Shanghai nor Shenzhen bourses responded to requests for remark.

The restrictions come as China steps up efforts to defend its markets from the volatility triggered by U.S. President Donald Trump’s new wave of steep tariffs, which now embody duties of as much as 125% on some Chinese language items. Whereas international markets have seen sharp losses, China’s fairness market has remained comparatively secure due to state-backed interventions.

These embody elevated inventory purchases by the state fund Central Huijin, a wave of company share buybacks, and commitments from high brokerages to assist regular the market. Brokerages have additionally been instructed to intently monitor trades from main non-public funds and retail shoppers.

A discover seen by Reuters warned that the 50 million yuan restrict might be lowered additional if promoting stress intensifies. Chinese language and Hong Kong shares rebounded on Friday, trimming earlier losses regardless of the rising commerce tensions.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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