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Authorities Take Further Steps to Contain Equity Market Fallout

CHINA
  • China are said to be tightening their grip on local stock exchanges by banning the net sale of equities at the open and close of domestic trading, according to Bloomberg.
  • The piece writes that the CSRC have banned major institutional investors from reducing their equity holdings at both the open and close of trading on each day.
  • China headline comes amid several policy steps in recent weeks seemingly targeted at stabilising asset prices - overnight, and late yesterday, reports circulated that China's stock exchanges were ramping up supervision of quant trading names and in particular their use of leverage - increased scrutiny followed market instability that triggered names including Ningbo Lingjun Investment Management Partnership to sell as much as CNY 2.6bln in shares within 60 seconds this week.

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