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MNI: China Equity Challenges Rise, More Stimulus Needed

MNI (Singapore)
(MNI) Beijing

The latest round of A-share support measures may provide short-term stimulus, but greater reform is needed to revitalise the market, according to experts.

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China’s latest efforts to support the equity market will likely have limited impact, while share sale and IPO restrictions may increase financing difficulties for some companies, market experts and policy advisors told MNI.

Chinese regulators launched a slew of rules to support the sluggish equity market on Aug 27, following a 5.19% slump in the A-shares over the month. The measures focus on slowing the pace of IPO approval, restraining major investor share sales and refinancing of underperforming firms, and a stamp duty reduction on securities transactions.

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China’s latest efforts to support the equity market will likely have limited impact, while share sale and IPO restrictions may increase financing difficulties for some companies, market experts and policy advisors told MNI.

Chinese regulators launched a slew of rules to support the sluggish equity market on Aug 27, following a 5.19% slump in the A-shares over the month. The measures focus on slowing the pace of IPO approval, restraining major investor share sales and refinancing of underperforming firms, and a stamp duty reduction on securities transactions.

Keep reading...Show less