Revamping Trading Mechanism to Resuscitate Chinese Stock Market

Shanghai and Shenzhen stock exchange to study measures to stimulate market

In a bid to lower investors’ trading costs and improve liquidity, the Shanghai and Shenzhen stock exchanges have announced that they will be studying measures to stimulate the market. This move comes as part of an effort to invigorate capital markets and boost investor confidence in the face of China’s struggling economic growth. The measures under consideration include allowing investors to place smaller orders in auction trading, improving trading mechanisms for exchange-traded funds (ETFs), and revising rules to support the development of index funds.