China‘s securities regulator is considering easing rules for overseas mutual funds when short–term trading in China-listed A-shares, in a bid to attract foreign investment, the Shanghai Securities News reported on Sunday.
Currently, funds holding 5% or more of a China-listed company must give up gains from short–term trading – defined as selling shares within six months of purchase, or buying shares within six months of sales, according to China‘s securities law.
However, regulators determine short–term trading based on holdings of each product for Chinese funds, but combined holdings for foreign peers.
The China Securities Regulatory Commission (CSRC) plans to also apply short–term trading rules on a product basis for foreign funds, so as to facilitate foreign investment, the newspaper said.
Reuters