Earlier reports today weighed on Chinese equities:
- Reports that China weighs curbs on stock speculation
- Shares of 'China's Nvidia', Cambricon, have been slammed more than 7% lower
- ICYMI: China financial regulators consider cooling measures to temper stock market gains
Guotai Haitong Securities have disputed the earlier reports:
- said the draft measures submitted Friday are aimed at safeguarding the Chinese market and consolidating its steady upward trend.
- The broker stressed the importance of maintaining current momentum while encouraging long-term, value-driven and rational investment.
The firm warned that sharp swings in equities are not conducive to market development and cautioned against misleading public opinion. It noted that securities lending and short-selling remain possible under quota management, even as regulators weigh adjustments.
Guotai Haitong added that recent market fluctuations reflected profit-taking after a rapid rally and the impact of false rumors, but said its outlook for Chinese equities remains unchanged, with upward momentum seen as sustainable.
