Chinese Stock Market Surges In An Unstable Session

1894

stock.jpg

This Thursday, Mainland Chinese shares bounced back following the regulators’ stringent steps to keep the stock market in right pace.  Up to 5.76% of losses were reversed by the Shanghai Composite index, a biggest percentage gain since 2009.

Analysts said that banning of big investors from selling stocks might have helped to support the market.

In the meantime, Xinhua, a state-run news agency said police were investigating “vicious short-selling” on the country’s stock market.  The news agency added that the authorities would “crack down” on the operations that lead to the breaking of rules and regulations related to trading.

The benchmark Shanghai index closed up 202.14 points at 3,709.33.

Introduction of new rules by China’s market regulators in the past week will help to relieve pressure on the Chinese shares.

According to some analysts, this Wednesday was called as “Black Wednesday” as Shanghai Composite fell as much as 8.2%.    

To curb the causes for the falling markets, Beijing has relaxed lending rules.  This is to make the process easy for the people who borrow money for investment with a hope to buy more stocks.  That follows a move late on Wednesday to ban investors holding stakes of more than 5% in companies from selling shares in the next six months.

In the meantime, nearly 1,300 companies have stopped trading in their stocks to put off a further fall in their business.

BBC Credit Link 

 

 

 

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.