China’s stock market regulator, the CSRC, stated over the weekend that maintaining stock market stability and restoring investor confidence are still its top priorities, despite the recent turbulence which dampened market sentiment and trading volume.
According to a report from the state-run China Daily newspaper, CSRC spokesperson Deng Ge stated that the regulator, meeting with major brokers and fund managers last week, urged firms to take better control of their margin trading and short sales business, both of which have been blamed for recent volatility in mainland Chinese stocks.
Zhang Yujun, assistant chairman of the CSRC, also noted that the regulator had banned risky margin financing through non-brokerage channels and will step up the crackdown on using program trading to “maliciously” short the market.
The CSRC was also targeting speculative trading in stock index futures and had prohibited futures companies from offering margin lending, he added.
On Friday, Chinese stocks rallied hard with the benchmark Shanghai Composite index rising more than 2%.
For the week the index rallied 2.2%, although, from its multi-year high struck in mid-June, it has still fallen 27.64%.
Trading in mainland Chinese stocks gets under way at 11.30am AEST.
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