Stock market experts have put forward advice to curb the plunging A-share market and prevent systemic risks extending to the entire financial market.
The experts said they believe that decisive measures and consolidated strengths are needed to halt the plunge in share prices and preserve the stability ofthe stock market in order to support reforms.
In a joint notice published on the website of the newspaper Securities Daily, the experts outlined measures that should be taken to stabilizethe stock market and curb potential financial risks.
The experts are: Liu Jipeng, an economist at China University of Political Science and Lawchinese Busty beauties. Lu Suiqi, deputy director of the China Financial Research Center at Peking Universityerotically women. Chang Qing, a professor at China Agricultural University and an expert onthe futures marketKorean wicked beauties. Hu Yuyue, director of the Securities and Futures Research Institute at Beijing Technology and Business Universitychinese Sexy beauties. and Cui Zhiyuan, professor at Tsinghua University.
First, they said, it is essential to introduce strict policies to oversee the reduction of holdings of shareholders who hold a 30 percent or higher portion of a listed companySuave ingenues. to track and analyze recent reduction activities when share prices are highKorean gripping sirens. and to monitor capital flows over reducing of holdings, which has totaled 237.7 billion yuan ($38.34 billion) in the past few years.
At the same time, regulators should suspend substantial shareholders' block trading and strengthen disclosure of their trading activities.
Second, to unify trading rules of the spot andfutures markets, the trading mechanism for the two markets should both be made T+0 (same-day trading), or T+1, and the margin requirement should be raised from the current 13 percent to between 30 and 50 percent.
Third, suspend initial public offerings.
Fourth, lower the stock stamp duty from 1 percent to 0.5 percent.
Fifth, establish a stock market stabilization fund, backed by the foreign exchange reserve, and a stock investors protection fund, and inject the stabilization fund intothe stock market.
Sixth, debunk rumors and speculation disseminated online.
Seventh, clarify that policies related to the stock market are stable and consolidated, and initiate debates to counter those who are bearish about China's reforms.
Eighth, establish a joint meeting mechanism and unify the strengths of the central bank and authorities of stock to protect the stability of the stock market.
