Chinese Stock Exchanges Pledge Reforms While Urging Funds to Stabilize Markets

Shanghai and Shenzhen exchanges meet with foreign investors and impose stock-selling restrictions on large funds to counter early-year market losses.

The Shanghai and Shenzhen stock exchanges announced plans to further reform and open China's capital markets following discussions with foreign investment institutions.
Foreign investors expressed confidence in China's long-term economic growth and highlighted investment opportunities in high-end manufacturing, IT, and consumer electronics sectors.
Amid significant early-year stock market losses, Chinese exchanges reportedly requested large mutual funds to limit stock selling and increase net purchases to stabilize markets.
The CSI 300 Index saw its worst New Year start since 2016, dropping 2.9% on the first trading day of 2025, fueled by concerns over potential U.S. tariffs under incoming President Donald Trump.
China's regulatory bodies emphasized their commitment to stabilizing markets through monetary easing, policy adjustments, and direct engagement with foreign investors to boost confidence.