BEIJING: China’s securities regulator is considering easing rules for overseas mutual funds when short-term trading in China-listed A-shares, in a bid to attract foreign investment, the Shanghai Securities News reported on Sunday.
Currently, funds holding 5% or more of a China-listed company must give up gains from short-term trading - defined as selling shares within six months of purchase, or buying shares within six months of sales, according to China’s securities law.
However, regulators determine short-term trading based on holdings of each product for Chinese funds, but combined holdings for foreign peers.
The China Securities Regulatory Commission (CSRC) plans to also apply short-term trading rules on a product basis for foreign funds, so as to facilitate foreign investment, the newspaper said.
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