China Implements Measures to Stabilize Stock Market Amid Quant Fund Scrutiny
In a series of regulatory moves, China tightens restrictions on quant trading and bans major investors from net stock sales at market open and close, aiming to bolster market confidence.
- China's securities regulators enforce a ban on major institutional investors reducing equity holdings at the start and end of trading days, targeting stability in the $8.6 trillion stock market.
- Quantitative hedge fund Lingjun Investment faces a three-day trading ban after a rapid stock sell-off, marking a significant step in regulatory efforts to curb market volatility.
- The Shanghai and Shenzhen stock exchanges announce increased scrutiny on quant trading, including high-frequency trading, to protect small and medium-sized investors.
- China's stock market shows signs of recovery with the CSI 300 index rising 12% from five-year lows, following a series of government interventions.
- Regulatory measures include tightening IPO approvals, encouraging dividend payouts, and cracking down on financial fraud, alongside efforts to attract long-term investments.