SHANGHAI (Reuters) – China’s financial markets regulator said on Friday it would cut transaction costs, support share buybacks and introduce long-term capital tools as part of a package of measures aimed at reviving the stock market and boosting investor confidence.
China’s Securities Regulatory Commission (CSRC) said a cut in stock trading stamp duty, a hotly-discussed measure, was uncertain because it was outside its purview.
Among the other measures mentioned by the CSRC are a reflection on the extension of the opening hours of the Stock Exchange, as well as on the means to promote the development of equity funds and to make listed companies more attractive to investors.
The series of measures follows a pledge made in late July by China’s top leaders to reinvigorate the stock market, which has slumped due to the country’s slow economic recovery.
However, some investors consider Friday’s measures to be of limited impact.
The measures “will provide a short-term boost to a market where investors are extremely pessimistic,” said Pang Xichun, research director at Nanjing RiskHunt Investment Management Co.
“But they won’t change market fundamentals. A bull market requires real policies that would stimulate credit expansion.”
(Shanghai office report, Corentin Chapron, edited by Kate Entringer)
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