China Steps Up Efforts to Stabilize Markets as Confidence Slumps
- Funds asked not to net sell stocks, banks to intervene on yuan
- Hang Seng down more than 8% this year, yuan down more than 5%
Mainland exchanges this week asked investment funds to avoid net selling equities.
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Chinese authorities have stepped up efforts in recent days to bolster financial markets in a sign that Beijing is growing uncomfortable with the pace of declines in stocks and the yuan.
Mainland exchanges this week asked some investment funds to avoid net selling equities. Officials requested state-owned banks to escalate intervention to support the yuan, while also encouraging companies listed on the tech-heavy Star Board to buy back shares. The securities regulator said late Friday it will slash handling fees in stock transactions and study extending trading hours for equities and bonds.