A staff member walks past the Shenzhen Stock Exchange in Shenzhen, south China's Guangdong Province, Sept. 21, 2020. (Xinhua/Mao Siqian)
BEIJING, Oct. 17 (Xinhua) -- China's top securities regulator, the China Securities Regulatory Commission (CSRC), is mulling two new rules on short-swing trading for foreign funds, to facilitate foreign funds' investment in China's A-share market, reported Shanghai Securities News on Monday.
The new rules will give national treatment to qualified overseas mutual funds and allow them to hold securities on a product basis. Besides, the CSRC plans not to apply the short-swing trading rules to Hong Kong Securities Clearing Company Ltd., through which foreign funds gain access to China's A-share market under the mainland-Hong Kong stock connect.
Short-swing trading refers to major shareholders or executives of a company selling shares within six months of purchase, or buying shares within six months of sales. In this case, any profits made from the trading should be returned, according to China's securities law.
CSRC has excluded trading of a combined 5 percent or more of a China-listed company by multiple public funds of the fund management company in six months from short-swing trading.
Experts believe that the move represents faster institutional opening-up of China's capital market, which will make it more convenient for foreign funds to invest in the country's A-share market and improve the operational efficiency of the mainland-Hong Kong stock connect.
In recent years, thanks to the two-way opening up of China's capital market, foreign investors have become important participants of the country's A-share market.
(Edited by Li Shimeng with Xinhua Silk Road, lishimeng@xinhua.org)
A single purchase
