Free Trial

China Asks Some Funds to Avoid Net Equity Sales as Markets Sink (BBG Sources)


MNI (London) - The latest BBG source report noted that “Chinese authorities asked some investment funds this week to avoid being net sellers of equities, as a rout in the nation’s financial markets deepened, people familiar with the matter said.”

  • “Stock exchanges issued the so-called window guidance to several large mutual fund houses, telling them to refrain for a day from selling more onshore shares than they purchased.”
  • This comes on the back of the well-documented worry re: the Chinese economy, while the recent intensification in headwinds for the property sector and shadow banking space also represent likely triggers for the “window guidance.”
  • This isn’t a new angle from Chinese policymakers, with BBG sources reminding us that “the authorities issued similar instructions to investment firms several times last year.”
  • BBG cautioned that “history shows that such guidance tends to do little to support the market.”
  • Accordingly, there wasn’t much, if any, reaction to the story in the Hang Seng (the story hit after the close of mainland Chinese cash equity markets).
MNI London Bureau | +44 0203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.