China seeks to stabilize markets ahead of party congress: sources

SHANGHAI (Reuters) – Two sources with direct knowledge of China’s securities regulator told Reuters recently, telling some fund managers and brokers to refrain before next month’s Communist Party congress. Massive sell-offs of stocks to avoid major market volatility. One of the sources said the instructions were issued by the Shanghai Stock Exchange and Shenzhen Stock Exchange through so-called “window guidance” or no Written documents of unofficial policy directives given orally. “They asked (us) to avoid unusual trading activity, including massive sell-offs and buy-ins. Basically it’s a move to stabilize the market,” sources said. Another buyer source said they were also notified. the source said. The source requested anonymity due to the sensitivity of the issue. China’s Shanghai and Shenzhen stock exchanges and the China Securities Regulatory Commission did not immediately respond to Reuters’ requests for comment. China’s ruling Communist Party opened its 11 October Congress . It is very likely that the 3. The term of office of the top leader is five years, and the decision-making personnel of the Politburo are reorganized. In late July, the Shanghai Stock Exchange (SSE (Lang:

SSE

)) vowed to maintain market stability ahead of the party congress, saying it would “resolutely” prevent large and rapid fluctuations in capital markets. A compliance officer at a mutual fund firm in Shanghai said he had not received window guidance, but it was the fund manager’s “to help ensure market stability ahead of the convention” Natural Responsibility”.

China Main Equity benchmark CSI

has fallen about 6% so far this month, more than % so far this year. Due to COVID-

‘s gloomy growth outlook dampens risk appetite outbreak, housing market crisis and intensification Geopolitical tensions hurt economic growth.