China stocks surge following new short-selling curbs

On Thursday, China stocks rebounded after the securities regulator introduced additional restrictions on short-selling to enhance market sentiment. Hong Kong stocks also experienced a significant increase.

The China Securities Regulatory Commission announced on Wednesday that securities re-lending, a practice where brokers borrow shares for clients to short sell, would be suspended. Additionally, margin requirements for short-sellers would be increased. These measures followed a disappointing June consumer inflation report, which had further weakened stock market performance.

By midday, the Shanghai Composite index had risen by 0.77%, reaching 2,961.99 points, while the blue-chip CSI 300 index climbed 0.98%. The CSI’s financial sector sub-index decreased by 0.75%, whereas consumer staples, real estate, and healthcare sectors saw gains ranging from 1.73% to 3.07%. Notably, new energy stocks surged by 3.8%, leading the gains.

In Hong Kong, Chinese H-shares rose by 1.44%, hitting 6,341.35 points, and the Hang Seng Index increased by 1.54%, reaching 17,740.44 points. The smaller Shenzhen index rose by 2.03%, the start-up board ChiNext Composite index increased by 1.98%, and Shanghai’s tech-focused STAR50 index climbed by 0.83%. The Hang Seng energy index edged up by 0.1%, while the IT sector rose by 1.6%.

Across the region, MSCI’s Asia ex-Japan stock index strengthened by 1.18%, while Japan’s Nikkei index saw a rise of 1.05%. The yuan was quoted at 7.2714 per US dollar, 0.06% stronger than the previous close of 7.276.

The recent regulatory measures in China have had an immediate positive impact on both mainland and Hong Kong stock markets, reversing some of the negative trends caused by economic concerns.

Fidelity China Special Situations PLC (LON:FCSS), the UK’s largest China Investment Trust, capitalises on Fidelity’s extensive, locally-based analyst team to find attractive opportunities in a market too big to ignore.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
Fidelity China Special Situations

More articles like this

Fidelity China Special Situations

Positive momentum in Hong Kong’s stock market

Hong Kong stocks advanced for a second consecutive day, driven by optimism about China’s support for the city’s financial market. This has reinforced its position as a key financial hub. The Hang Seng Index gained 0.4

Fidelity China Special Situations

China stocks rise as traders brace for a key week

China’s stock markets saw a positive trend on Monday, as traders prepared for an eventful week. With a US election looming, potential changes in interest rates, and a significant policy meeting set to take place in

Fidelity China Special Situations

Modest gains for China’s stock market as tech shares lead

China’s stock market experienced modest gains on Monday, driven primarily by technology shares. This followed Beijing’s announcement of new initiatives aimed at supporting innovative tech companies. Additionally, the country cut its benchmark lending rates, contributing to

Fidelity China Special Situations

Chinese stocks surge amid aggressive stimulus measures

Chinese stocks experienced a remarkable surge, marking their largest single-day gains in 16 years, driven by new stimulus measures from Beijing. The domestic A-shares reached record turnover as investors rushed to capitalise on the ongoing rally.

Fidelity China Special Situations

China’s economic stimulus sparks Asian stock surge

China’s stock market experienced its strongest week since 2008, driving Asian shares to their highest level in two and a half years. This surge was largely attributed to Beijing’s launch of a substantial stimulus package aimed

Fidelity China Special Situations

China’s growing influence in global investment and cooperation

China’s efforts to attract and utilise foreign capital are strengthening, leading to new developments in two-way investment. Amid global challenges and declining cross-border investment, the country has been actively promoting its attractiveness in opening up and

Fidelity China Special Situations

Optimism grows for China’s market recovery

Sumitomo Mitsui DS Asset Management recently expressed confidence that China has passed its most challenging period, despite ongoing concerns in the property sector. The firm believes that Chinese equities now present an attractive investment opportunity, given

Fidelity China Special Situations

Positive developments in Chinese markets as stimulus hopes rise

Speculation around potential new economic policies from Beijing gained momentum on Monday, sparking optimism in the Chinese markets. Reports from China Daily highlighted insights from three economists affiliated with government-backed think tanks, who urged Beijing to

Fidelity China Special Situations

China to enhance reform efforts with new focus

China is set to implement targeted strategies to increase the impact of its ongoing reform initiatives, aiming for significant progress in the future, according to a State Council official. During its third plenary session from July

Fidelity China Special Situations

China stocks see modest gains amid robust import growth

China stocks experienced a modest rise on Wednesday, driven by robust import growth according to the country’s trade data, although gains were tempered by weaker-than-expected export figures. Hong Kong shares also saw an increase. In July,

Fidelity China Special Situations

China’s Politburo endorses long-term economic strategy

China’s Politburo has endorsed the Communist Party’s long-term economic strategy, emphasising increased consumer spending and the elimination of unproductive companies to foster a “survival of the fittest” environment. Following a meeting with the party’s top 24