China Reopens Equities to Trust Firms to Boost Flagging Market
China will reopen its stock markets to trust companies to help increase the number of investors, according to a statement posted on the China Securities Regulatory Commission website.
The notice, posted on Aug. 31, doesn’t specify when the change will take effect.
Policy makers are striving to revive confidence in securities markets and boost economic growth. The Shanghai Composite Index fell to the lowest level since February 2009 on Aug. 31, capping a fourth month of losses.
The CSRC’s notice didn’t specify when trust companies were banned from investing in stocks. The prohibition was based on verbal notices in 2009, the Oriental Morning Post reported yesterday.
Two phone calls today to the CSRC’s press office outside business hours were unanswered.
The regulator has already announced a 20 percent reduction in transaction fees on equities trading. That cut, which took effect yesterday, will save investors 600 million yuan ($94 million) in the last four months of the year, the regulator estimated on Aug. 2.
The commission outlined guidance for participation by securities companies in regional equity rights exchanges in a separate statement on Aug. 31.
--Fan Wenxin, Bonnie Cao. Editors: Jim McDonald, Nerys Avery
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