All articles tagged with #regulatory measures
China's financial regulators are considering measures to cool down the rapid stock market rally, including easing short selling restrictions and cracking down on speculative trading, to promote stable growth and prevent a repeat of the 2015 bubble, amid concerns over frothy valuations driven by retail investor activity and liquidity.
Chinese regulators are planning to brief President Xi Jinping on the stock market as it continues to plummet, with anticipation for more forceful government efforts to end the rout. The CSI 300 benchmark closed 3.5% higher after the news, and foreign inflows surged. Officials have been working on market rescue measures, including tightening trading restrictions and planning to update the top leadership on market conditions and policy initiatives. The $7 trillion stock rout has prompted concerns about consumer confidence and the need for stabilizing the stock market, with hopes that this time will be different.
Soros Fund Management CEO Dawn Fitzpatrick warns that the banking sector crisis is not over yet and more bank failures are in sight, particularly in small banks. She believes that there are more problems under the surface and banks have to prepare for incoming regulatory measures that will require them to report their unrealized losses on assets such as government bond holdings. Fitzpatrick also predicts that there will be a lot more scrutiny on liquidity management and liability management, which was not given much focus during the 2008 financial crisis.
US bank deposit outflows have stabilized, with some reversing, and are unrelated to Credit Suisse's problems, according to an anonymous US official. US banks have limited exposure to Credit Suisse, and regulators are in touch with Swiss counterparts on the situation. The stabilization is attributed to systemic protection guarantees and new Fed facilities that allow banks to access liquidity to cover outflows.