Liquid Alts: China Urges Funds to Avoid Selling Shares

https://dailyalts.com/wp-content/uploads/2020/01/night-4694750_1920-china-digital-banking.jpg

The Shanghai Index fell 7% on Monday due to coronavirus fears.

Chinese mutual funds are facing new regulatory scrutiny in the face of a sharp selloff Monday. During the first day since the Lunar New Year holiday, the Shanghai Index fell by 7%. Chinese officials are doing everything they can to prevent a sharper decline.

While short selling is already illegal, the next crackdown centers on the actions of mutual funds.

Chinese Mutual Funds Urged Not to Sell

Chinese regulators have told mutual fund managers to avoid selling shares, according to reports. In the wake of the coronavirus, the China Securities Regulatory Commission has ordered mutual funds to only sell unless they face massive redemptions.

“Potential massive investor redemption is a big concern,” a fund manager told Reuters. “If that happens, mutual fund managers have no choice but sell.”

The new guidance raises outside concerns about transparency and accountability in the Chinese markets.

In addition, the Peoples’ Bank of China injected $174 billion into the markets. By comparison, that figure is larger than the GDP of neighboring Kazakhstan. In addition, the capital injections were larger than the entire market cap of Bitcoin.

As of Monday, the coronavirus had officially claimed 361 lives in China. The nation has reported a large uptick in confirmed cases in recent days.

Recent: Liquid Alternatives: The Goldman Sachs “Stealth” ETF

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/12/AMD_headquarters_santa_clara.624da707519a6.jpg
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…

https://dailyalts.com/wp-content/uploads/2023/12/RHCEU-Inline.jpg
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…

https://dailyalts.com/wp-content/uploads/2023/12/Samsung_UK_Samsung_Pay_Lifestyle_0552-revised-Pictogram-23.11.30-1024x744-1.png
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…

https://dailyalts.com/wp-content/uploads/2023/12/Revaia-founders.jpg
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…