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China unveils measures to revive stock market


SHANGHAI (Reuters) – China’s securities regulator said on Friday it would cut trading costs, support share buybacks and introduce long-term capital as it unveiled a package of measures aimed at reviving the stock market and boosting investor confidence.

The China Securities Regulatory Commission (CSRC) said it was not aware if there would be a cut in stamp duty, a measure which has been hotly discussed recently but is beyond CSRC’s power.

Other measures laid out by the CSRC include boosting the development of equity funds, studying plans to extend trading hours, and improving the attractiveness of listed companies.

The slew of measures come after China’s top leaders vowed in late July to reinvigorate the stock market, which has been reeling amid the country’s flagging economic recovery.

But Friday’s measures are seen by some investors as being incremental.

The measures “will give a short-term lift to a market where investors are extremely pessimistic,” said Pang Xichun, research director at Nanjing RiskHunt Investment Management Co.

“But they won’t change the market fundamentals. A bull market requires genuine policies that would boost credit expansion.”

(Reporting by Shanghai newsroom; Editing by Toby Chopra)

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