This undated photo shows a pedestrian walking past the Shanghai Stock Exchange. (PHOTO PROVIDED TO CHINA DAILY)
HONG KONG - Shanghai and Shenzhen stock exchanges said late Thursday they would study measures to lower investors' trading costs and improve liquidity to further stimulate the market.
Shanghai and Shenzhen stock exchanges said they would study after-hours fixed price trading mechanism for ETFs, which will would reduce price fluctuations
The measures include allowing investors to place smaller orders in auction trading and improving trading mechanisms for exchange-traded funds (ETFs). The exchanges also revised rules to allow faster development of index funds.
Shanghai and Shenzhen stock exchanges said in identical statements on Thursday that they would "roll out a series of measures to stimulate market vigour, lubricate trading, and increase market appeal."
ALSO READ: Beijing, Hong Kong bourses sign MoU to promote dual listing
More specifically, investors trading stocks or listed funds would be allowed to place orders of a minimum of one share, or one unit. Currently, each order must be in blocks of 100 shares or units.
Such a change would reduce investors' costs, enable more efficient use of capital, and help improve market liquidity, the bourses said.
In addition, the exchanges said they would study after-hours fixed price trading mechanism for ETFs, which will would reduce price fluctuations.
Photo taken on Aug 24, 2020 shows the Shenzhen Stock Exchange in Shenzhen, south China's Guangdong Province. (PHOTO / XINHUA)
The bourses also stressed strengthening their watchdog roles and improving transparency, including measures to curb speculative trading and issuing English version of transaction regulatory rules, and pledged to "balance smooth trading and regulating excessive speculation".
ALSO READ: China, Singapore bourses further bridge growing ETF markets
The exchanges pledged to actively incorporate global best practices and promptly implement each improvement measure as soon as it is ready.
