(From China Daily)
Chinese shares rebounded Tuesday as the benchmark Shanghai Composite Index surged more than 3 percent in afternoon trading, closing at 3,170.45 points, up 2.92 percent.
The Shenzhen Component Index gained 3.29 percent to close at 10,320.23 while the ChiNextIndex, which tracks China’s NASDAQ-style board of growth enterprises, soared by 5.68 percent to close at 2,001.16.
More than 300 companies’ stock reached the 10 percent daily limit with public transportation,software and 3D printing sectors the driving force. During the afternoon session, a strong buying sentiment dominated.
China, meanwhile, scrapped dividend tax for long-term investors. The move is part of government efforts to promote long-term investment following the rout since mid-June.
The slew of easing measures demonstrates the government’s determination to keep the market stable. Since individual retail investors dominate the market, the government’s attitude is crucial, according to analysts at wlstock.com.
Chinese stock markets have proposed “circuit breakers” to freeze trading if stocks rise or fall too fast, after recent fluctuations on its bourses spooked global markets, a news report said Tuesday, dpa reports.
The Shanghai and Shanzhen exchanges would see trading stopped for 30 minutes if a key index rises or falls by 5 per cent within a day.
An intra-day change of 7 per cent would cause trading to be stopped for the rest of the day, the South China Morning Post reported, citing the exchanges.
The index used would be the CSI300, which lists the 300 largest firms listed on the mainland. It would include futures in those shares.
The system would restrict all A-shares, traded only by Chinese citizens, which account for the majority of stocks in China.
The proposal is now open to public feedback until September 21, the report said.
The bourses announced the idea a day after the China Securities Regulatory Commission said it was considering a similar plan, it said.
Categories: Top News