China's 15 moves to prop up its falling stock market that haven't worked

Tuesday saw a surge in Chinese stock prices following a report by Bloomberg News indicating that the Chinese government is contemplating several actions to support the stock market. According to Bloomberg News, which cited unidentified sources, policymakers are trying to raise around 2 trillion yuan ($279 billion), primarily from state-owned businesses’ offshore accounts, as part of a fund to purchase shares. A Reuters request for comment was not answered by the China Securities Regulatory Commission (CSRC). The government has implemented a number of market-supporting measures in recent months, which have slowed but not completely stopped the sell-off. Following is a list of these policy moves and measures: Jan 22, 2024 China’s cabinet said it will take more forceful and effective measures to stabilise market confidence, state TV said, citing a meeting chaired by Premier Li Qiang. The cabinet also said it will step up medium- and long-term fund injections in the capital market to strengthen stability, as well as promote healthy development of the market. Jan 5, 2024 Beijing informally asked some money managers in China to prioritise the launch of equity funds over other products, sources told Reuters, as authorities scrambled to revive the lagging stock market. Dec 1, 2023 State-owned China Reform Holdings Corp said it bought tech-focused index funds and would continue to increase holdings. Nov 27, 2023 Sources told Reuters that the Beijing Stock Exchange has de facto implemented a new policy that prevented major shareholders of companies listed on the bourse from selling stock. Nov 11, 2023 China Securities Regulatory Commission (CSRC) said banks, social security funds and other long-term investors are encouraged to invest in tech innovation bonds issued by SOEs controlled by the central government. Oct 30, 2023 An increasing number of Chinese listed companies unveiled share buyback and purchase plans in October, while major mutual fund house E Fund Management Co said it would invest in its own product. Oct 23, 2023 China’s state fund Central Huijin Investment said it had bought exchange-traded funds (ETFs) and would continue to increase ETF holdings in the future. Oct 14, 2023 China’s securities regulator said it would restrict securities lending businesses and tighten scrutiny on improper regulatory arbitrage. Sept 21, 2023 Sources told Reuters that regulators have started to probe some hedge funds and brokerages on quantitative trading strategies amid a growing outcry against a sector able to profit from share price falls and volatility. Sept 1, 2023 China’s securities regulators tightened scrutiny over programme trading, seeking to better regulate the use of computer-generated algorithms in stock trading. Aug 28, 2023 China halved the stamp duty on stock trading, in an attempt to boost the struggling market as a recovery sputtered in the world’s second-biggest economy. Aug 27, 2023 China’s securities regulator said it would slow the pace of IPOs and further regulated share reductions. Stock exchanges in China also cut margin financing requirements. Aug 24, 2023 China’s securities regulator said that it was encouraging medium and long-term investors, such as state pension funds and wealth management funds, to increase their equity investments. Aug 18, 2023 China’s securities regulator unveiled a package of measures including a proposal to cut trading costs, supporting share buybacks and encouraging long-term investment. July 10, 2023 More than a dozen major mutual fund companies in China cut fees in roughly 1,500 fund products as regulators started reforming fee practices in the $3.7 trillion industry in an effort to reduce costs to investors. ($1 = 7.1710 Chinese yuan)