The reasons why CSRC resume opening A-share market on 3rd Feb:
1. The longer the A-share market suspended, the bigger the risk would accumulate, more and more uncertainties.
2. Long term A-share market close would influence the cross-border investors’ trading.
3. The trading regulation cannot be modified randomly, or would influence the market expectation.
4. Given the virus and the reaction of overseas markets, the related departments should remain on high alert for the possible abnormal move of A-share after the market resume trading, study and publish the hedging tools to ease the market’s fears.
5. With series of policies and measures gradually in place, market expectations would be improved and there’s good influence on prevent the investors’ irrational behaviors.
6. To resume trading on 3rd Feb is determined by weighting various factors comprehensively, which is also a reflection of the respect on market and regulations, as well as the confidence to overcome the difficulties.
7. To better contain current outbreak of nCov , CSRC decide to suspend the night session trading of futures market since 3rd Feb, and will inform as soon as it resume.
8. For investors in Hubei Province (with company registered in Hubei or residents in Hubei, same below), if the contract of the stocks pledge expire or clients facing difficulties to payback and applied for extension, the securities firms should help them to extend up to 6-month.For investors of other regions, they can discuss with securities companies to extend for 3-6 months.
9. Before the outbreak been contained, the securities should not actively liquated the stock margin trading accounts of investors in Hubei Province and those in quarantine or receiving medical aid. For other investors, the securities firms should communicate more with clients and extend the time limit for deposit of more collateral in margin calls.
10. For company bonds mature during the period of nCov outbreak containment, if the issuers operate normally, CSRC will provide assistance such as green channel, to support refinancing.