China considers easing short-term trading rules for foreign funds


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BEIJING — China’s securities regulator is studying policies that would give overseas mutual funds national treatment when determining 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.

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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. (Reporting by Samuel Shen and Ella Cao, Editing by Louise Heavens)


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