China vows tighter market oversight as stock benchmark nears decade high
A Chinese flag flutters outside the China Securities Regulatory Commission (CSRC) building on the Financial Street in Beijing, China February 8, 2024. REUTERS/Florence Lo
SHANGHAI: China's securities regulator vowed to step up market monitoring and crack down on excessive speculation, as the country's benchmark stock index hovered near a decade high with record turnover this week.
The statement came after Chinese bourses said on Wednesday (Jan 14) that they would raise the minimum margin requirement for new borrowings to 100 per cent from 80 per cent, effective Jan 19, a move approved by the regulator and aimed at cooling the red-hot market.
The Shanghai Composite Index has gained 6 per cent over the past month.
The China Securities Regulatory Commission said in a statement it would carry out timely counter‑cyclical adjustments and strengthen supervision over trading activities and information disclosure.
The regulator also said it will crack down on illegal activities such as excessive speculation and market manipulation, aiming to sustain the market's positive momentum.
Recent weeks have seen hectic trading in sectors such as artificial intelligence, aerospace and robotics, prompting risk warnings from listed firms.
Onshore share turnover hit nearly 4 trillion yuan on Wednesday, the highest on record.
