Shanghai, Jan 07, (V7N) - In early January 2025, China's primary stock exchanges, including those in Shanghai and Shenzhen, requested large mutual funds to reduce stock selling and focus on increasing their stock purchases. This move was aimed at stabilizing the stock market as the country faces ongoing economic challenges, including concerns over possible U.S. tariffs.
 
According to sources familiar with the matter, at least four major mutual funds were contacted on December 31, January 2, and January 3, and instructed to purchase more stocks than they sold each day. This request mirrors similar actions taken at the beginning of the previous year.
 
On the first trading day of the year, the CSI 300 Index, which tracks blue-chip stocks, saw a 2.9% drop, marking the worst start for the index since 2016. In response to the market downturn, Chinese authorities have implemented measures to support the market, including swaps and relending schemes worth 800 billion yuan, and have reached out to foreign institutions for assistance.
 
These efforts reflect China's commitment to managing market volatility and boosting investor confidence during a period of economic uncertainty.
 
END/BD/SMA/