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.


Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”
Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/02/52e4dc4a4854ae14ea898579ce203e7c1d22dfe05b53794a732973d6_640.jpg
ESG: Graham Clapp Says ESG-Focus is Creating a New Bubble
February 27, 2020     ESG and Sustainability, News

RWC Partners fund manager Graham Clapp warned that sustainable investing trends are poised to form a possible bubble in the markets. He compared it to the tech boom of the 1990s….

https://dailyalts.com/wp-content/uploads/2019/11/Warren_Buffett_in_2010.jpg
Hedge Fund: Whitney Tilson Pumps Berkshire Hathaway as Top Retirement Stock
February 27, 2020     Hedge Funds, News

Former hedge fund manager Whitney Tilson has called Berkshire Hathaway (NYSE: BRK.A) the to retirement stock. Tilson, who now writes for Empire Financial Research, issued a note this week praising…

https://dailyalts.com/wp-content/uploads/2020/02/money-1084517_640-invesco-etf.jpg
Liquid Alternatives: Invesco Launches New Sterling Corporate Bond ETF With ESG

Invesco, the fund manager with $1.23 trillion in assets under management as of December 31, 2019, has launched in Europe a new, first-of-its-kind, sterling-denominated, corporate bond ETF with an ESG…

https://dailyalts.com/wp-content/uploads/2020/02/cryptocurrency-3423267_640-six-ieomx.jpg
Digital Assets: The SIX Swiss Exchange Buys A Stake in Crypto Trading Platform Omniex
February 27, 2020     Digital Assets, News

SIX Swiss Exchange announced it had struck a partnership agreement last week with San Francisco-based Omniex. The financial terms of the agreement, which also includes the acquisition of a stake…

Scroll to Top