The Chinese stock market is plunging after the Chinese government is said to be considering a number of measures to cool the overheated stock market.
As of 11:35 a.m. on the 4th, the Shanghai Composite Index fell 1.26% from the previous trading day to 3765.69. At the same time, the Shenzhen Composite Index fell 1.84% to 1,242.10.
Bloomberg reported on the same day that Chinese financial regulators are considering lifting restrictions on short selling and curbing speculative transactions.
In particular, it is reported that social network services (SNS) will stimulate novice investors and severely punish those who illegally recommend stocks.
As the Chinese stock market has recently shown an unusual surge, the Chinese government is interpreted as a measure to prevent unexpected market shocks in advance.
Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), has said that “long-term, valuable and reasonable investments” in the stock market are important.
The semiconductor sector is leading the decline in the Chinese stock market, with a significant adjustment. On the other hand, previously marginalized industries such as travel and distribution stocks are showing a rebound.
