China’s securities regulator is allowing mutual fund managers to sell more shares than they buy each day, three sources said, removing a ban introduced late last year aimed at propping up a flagging stock market.
The China Securities Regulatory Commission (CSRC) late last year barred major mutual fund companies from selling shares on a net basis on any day, answering top leadership calls to stabilize a market that was among the world’s worst performers.
CSRC didn’t immediately respond to a request for comment. One source directly aware of the change suspected the policy shift was partly due to growing redemption pressures on funds.