China’s main stock exchanges reportedly asked large mutual funds to restrict stock selling

Well, that perhaps explains the marginal decline today as opposed to the ugly start to the new year from last week. It is being reported that at least four large mutual funds have received calls from the Shanghai and Shenzhen stock exchanges on Thursday and Friday last week, asking them to buy more stocks than they sold each day.

One of the sources added that “such guidance has a tendency to become regular”, noting a similar request made around the start of last year. From last week: It’s been a real rough week for Chinese stocks

This article was written by Justin Low at www.forexlive.com.