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China Shares Continue To Trade Erratically

Mainland Chinese shares were trading erratically on Thursday as regulators continued trying to calm the markets.The Shanghai Composite index was up as much as 1.4% in mid-morning trade after falling 3.6% earlier.

China shares continue to trade

A move to ban big investors from selling stocks may have soothed investor worries, analysts said.

Meanwhile, the state-run news agency Xinhua said police were investigating “vicious short-selling” on the country’s stock market.

Xinhua said authorities would “crack down” on operations that had broken the laws and regulations related to trading.

By mid afternoon, the benchmark Shanghai index was up 1.3% at 3,552.8 points.

Relieving pressure

China’s market regulator has introduced a string of new rules in the past week to try and relieve pressure on Chinese shares – which have lost more than 30% of their value since mid-June.

On Wednesday, the Shanghai Composite fell as much as 8.2%, leading some analysts to describe the session as ‘Black Wednesday’.

In the latest efforts to try and stem the falling markets, Beijing has relaxed lending rules – making it easier for people to borrow money for investment – in the hope that they will buy more stocks. That follows a move late on Wednesday to ban investors holding stakes of more than 5% in companies from selling shares in the next six months.

Meanwhile, about 1,300 firms have halted trading in their stocks to prevent the value of their businesses falling further.

Elsewhere in Asia

The volatility in China was mirrored in Hong Kong, with the benchmark Hang Seng index reversing earlier losses – trading up 3.4% by mid-afternoon.

Japan’s Nikkei 225 index was down 1.1% as investors worried about China’s stock market and Greece’s future in the eurozone.

“Tokyo markets have been affected by Chinese shares since yesterday,” said SBI Securities’ Hideyuki Suzuki, who is general manager of the firm’s investment market research arm.

“But the Hang Seng Index and red chips which are now in positive territory are giving sense of relief,” he said.

In Australia, the S&P/ASX 200 index was down 0.2% in afternoon trade. While South Korea’s benchmark Kospi index slipped 0.2%.

Tony Williams
Tony Williams
Tony Williams is a seasoned journalist with over 10 years of experience covering a wide range of topics, from local news to international events. With a keen eye for detail and a passion for uncovering the truth, Tony has won numerous awards for his investigative reporting. He holds a degree in journalism from the University of California and has worked for several top-tier newspapers. Tony is known for his tenacity and commitment to delivering high-quality journalism to his readers, and he is widely respected in the industry for his integrity and professionalism.
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