China Asking Funds to Limit Stock Sales Before Congress, Sources Say
- Move is a fairly common operation to prevent big swings
- Traders seek policy direction at Communist Party meeting
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Chinese regulators have asked several big mutual fund houses and brokers to refrain from large sales of stocks before the party congress in October, according to people familiar with the matter.
The China Securities Regulatory Commission and the Shanghai and Shenzhen stock exchanges made the request last week via so-called “window guidance,” said the people who declined to be identified because they are not authorized to speak publicly. The move is a fairly common operation to prevent big swings during volatile periods and major political events, the people added.