China Makes its Stock Market More Lucrative for Investors with New Rules

https://tokenist.com/china-makes-its-stock-market-more-lucrative-for-investors-with-new-rules/

China's securities regulator has taken unprecedented steps to stabilize its financial markets, yielding a robust market opening. Yet, while these measures provide short-term relief, they are unlikely to resolve enduring economic issues, notably the struggling real estate sector.

The pivotal move came as China slashed stamp duty fees by half, down to 0.05%, stimulating investor participation and fostering market confidence—the first such cut since the 2008 global recession. China's securities regulator has also revealed plans to limit new public listings, aiming to balance supply and demand. Furthermore, controlling shareholders of non-dividend-paying companies are now barred from selling stocks below their IPO or net asset values.

China's benchmark stock index, CSI 300, climbed 1.17%, marking its most substantial single-day gain since November 2022. Meanwhile, the Hang Seng Index in Hong Kong rose around 1%.

While the stock market rebounds, China's second-largest economy faces ongoing challenges. Distressing economic data, including decreased consumer and business spending, heightens deflation concerns. Meanwhile, the real estate sector grapples with substantial challenges, with Evergrande's $300 billion debt-driven bankruptcy filing as a prime example.