New govt mea­sures to boost con­fi­dence

China Daily (Canada) - - FRONT PAGE -

• The Peo­ple’s Bank of China will pro­vide am­ple liq­uid­ity to help sta­bi­lize the stock mar­ket. It will work with China Se­cu­ri­ties Fi­nance Corp Ltd, the State-owned mar­gin len­der, to ob­tain liq­uid­ity through loans and bonds. The PBOC says it will do what­ever it can to pre­vent sys­temic risks.

• The China In­sur­ance Reg­u­la­tory Com­mis­sion has in­creased the lim­its for in­sur­ers to in­vest in bluechip stocks from 5 per­cent to 10 per­cent of their to­tal as­sets. Qual­i­fied in­sur­ers can also in­crease the ra­tio of their eq­uity as­sets from 30 per­cent to 40 per­cent of their to­tal as­sets.

• The State-ownedAs­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion, the State as­sets reg­u­la­tor, has urged the 112 cen­tral Sta­te­owned en­ter­prises to buy more shares in their com­pa­nies.

• The China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion has pro­hib­ited ma­jor share­hold­ers and se­nior ex­ec­u­tives of listed com­pa­nies from selling stocks in their own firms for at least six months.

• China Fi­nan­cial Fu­tures Ex­change has sub­stan­tially raised the mar­gin re­quire­ment for fu­tures trad­ing on the CSI 500 that tracks small and mid-cap stocks to 30 per­cent to curb spec­u­la­tive short selling.

• China Se­cu­ri­ties Fi­nance Corp Ltd has granted loans of 260 bil­lion yuan ($42.1 bil­lion) through stock col­lat­eral to 21 bro­ker­age firms to al­low them to buy more shares.

• The Min­istry of Fi­nance has en­cour­aged State-owned fi­nan­cial firms to in­crease their hold­ings in listed com­pa­nies when prices are at rea­son­able lev­els. It has also promised not to re­duce its hold­ings in Chi­nese shares dur­ing mar­ket volatil­ity.

• Cen­tral Hui­jin In­vest­ment Ltd, the in­vest­ment arm of the coun­try’s sov­er­eign wealth fund, has promised not to re­duce its stock hold­ings.

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