Chinese bourses adjust trading rules to stimulate stock market

Shanghai and Shenzhen stock exchanges announced on Thursday a series of measures to adjust trading rules in an effort to revitalize the Chinese stock market.

The changes aim to enhance trading convenience, stimulate market vitality, and enhance market appeal.

One of the proposed adjustments includes changing the order quantity requirement for stocks and funds traded on both markets. Under the proposal, investors will be able to place orders in single unit shares upon a minimum of 100 shares. Currently, orders must be made in round lots. 

Additionally, the bourses are conducting research to introduce a fixed-price after-hours trading mechanism for exchange-traded funds (ETFs).

Separately, improvements to trading supervision will focus on monitoring abnormal trading behaviors and potential violations of laws and regulations.

The Securities Times reported that allowing small-lot share transactions can better meet the trading needs of investors and reduce transaction costs for high-priced stocks. This may also enhance liquidity in the main board market, it added.

(Cover via CFP)

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