China's main stock exchanges asked some large mutual funds to restrict stock selling at the start of the year, three sources familiar with the matter said, as authorities sought to calm markets heading into a tricky period for the world's second-largest economy.
The guidance came as Chinese stocks kicked off 2025 with deep losses on worries that incoming US President Donald Trump would impose hefty tariffs on Chinese goods.
"Such guidance has a tendency to become regular," the source added, noting similar requests made around the start of last year.
The sources were not directly contacted by the exchanges but are aware of the discussions. They declined to be named due to the sensitivity of the matter.This came as China's state economic planner will hold a press conference on Tuesday morning about facilitating the formation of the mega-domestic market.
The National Development and Reform Commission announced yesterday that a press conference on Tuesday at 10 am in Beijing, with a topic of introducing the in-depth promotion of the construction of a unified national market.It comes as the stock markets in the mainland China and Hong Kong turned sluggish again in recent weeks following the stimulus last month.
Notably, a followup press conference by NDRC in early October of 2024 didn't reveal any new supportive measures, disappointing most investors and failing to extend the market momentum triggered by The People's Bank of China.In other news, the Shanghai and Shenzhen stock exchanges recently held meetings with foreign institutions, both bourses said, assuring investors that they would continue to open up China's capital markets.
The Shanghai stock exchange said in a post on its website late on Sunday that China's economy was supported by solid fundamentals and has shown resilience in a complex international environment.In a separate statement on Sunday, the Shenzhen stock exchange said it has listened to foreign institutions' opinions and suggestions regarding China's stock market.
