Soaring China stock markets plunge

CCTV News

China Financial Markets Plunge Investors react as they check stock prices in a brokerage house in Fuyang in central China’s Anhui province Friday, June 26, 2015. Chinese stocks plunged on Friday as panicked investors rushed to sell over fears that an extended bull market was coming to an end. (Chinatopix Via AP) CHINA OUT

On Friday, Chinese authorities rolled out another set of measures aimed at propping up the now bearish market, cutting the number of initial public offerings planned this month by two-thirds. This adds to frantic efforts to shore up plunging stock prices following another 5.7 percent decline in the country’s main market index.

China Stock Market Frenzy

In this photo taken Tuesday, June 30, 2015, a stock investor watches the screen at a brokerage house in Fuyang in central China’s Anhui province. Chinese authorities are scrambling to reassure jittery investors after soaring stock markets plunged, threatening to set back economic reform plans. The market benchmark soared 150 percent from the start of the boom late last year in one of the world’s fastest runups. It hit a peak June 12 and then reversed course and plunged 28 percent. It rebounded temporarily Tuesday, June 30, before losing 5.2 percent on Wednesday, July 1. (Chinatopix Via AP) CHINA OUT

The stock  market rose by almost 20 percent in just a couple of months around the beginning of this year – it’s estimated that in May alone, close to 600,000 new stock accounts were opened. But China Securities Regulatory Commission said the number of initial public offerings and the amount of capital raised from the equity markets will be reduced.

Ten IPOs would be launched during the first 10 days of July, down from more than 20 deals launched at the beginning of each month so far this year. Meanwhile, China Securities Finance Corp will boost its capital base to 100 billion yuan from 24 billion yuan. It also plans to raise money from various channels to expand business and stabilize markets. Earlier, China’s securities market regulator launched a probe into suspected market manipulation. The China Financial Futures Exchange has suspended 19 accounts in the past month for short-selling.

Sources: AP, CCTV news