Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • Dow

    39,760.08
    +477.75 (+1.22%)
     
  • Nasdaq

    16,399.52
    +83.82 (+0.51%)
     
  • Bitcoin USD

    70,345.21
    +255.01 (+0.36%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,960.54
    +28.56 (+0.36%)
     
  • Gold

    2,219.50
    +6.80 (+0.31%)
     
  • Crude Oil

    81.92
    +0.57 (+0.70%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Nikkei

    40,168.07
    -594.66 (-1.46%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE Bursa Malaysia

    1,530.60
    -7.82 (-0.51%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

Timeline of China's steps to stabilise FX, stock markets

(Reuters) - China has taken a series of steps to stabilise its foreign exchange market and stock market amid the slowing growth of the world's second largest economy.

The yuan has been in bearish pressure at a loss of 2.8 percent since Nov. 30 when the Chinese currency was admitted into the International Monetary Fund's (IMF) benchmark Special Drawing Rights (SDR) basket.

Following is the timeline of Beijing's market-stabilising measures, reforms and statements.

** Jan 18 - The People's Bank of China (PBOC) said it will start implementing a reserve requirement ratio (RRR) on offshore banks' domestic deposits as of Jan. 25.

ADVERTISEMENT

** Jan 15 - The China Association for public companies (CAPCO) called on major shareholders of listed firms to work together to stabilise the stock market.

** Jan 8 - The State Administration of Foreign Exchange (SAFE) has ordered banks in some trading hubs to limit dollar purchases this month, in the latest attempt to stem capital outflows.

China suspended its stock market circuit breaker after the mechanism helped promote sharp falls in the country's volatile markets.

** Jan 7 - China's securities regulator restricted share sales by listed companies' major shareholders, saying the move will stabilise market expectations.

** Jan 4 - China's onshore yuan's trading hours started to last until 11:30 p.m. local time (1530 GMT), rather than end at 4:30 p.m., a major reform step that should help onshore and offshore rates converge.

** Jan 1 - China introduced circuit breakers to the Shanghai Stock Exchange, Shenzhen Stock Exchange and China Financial Futures Exchange to "stabilise the market".

** Dec 30, 2015 - The PBOC has suspended at least three foreign banks from conducting some foreign exchange business until the end of March, three sources who had seen the suspension notices told Reuters.

** Dec 27 - China's top legislature approved a proposal to revamp the country's initial public offering (IPO) system, authorising the government to implement changes to the system that could be in place as early as March.

** Dec 12 - The China Foreign Exchange Trade System (CFETS) announced that it had launched a new trade-weighted yuan exchange rate index against a basket of currencies, a move that will eventually loosen the currency's link to the greenback.

** Dec 9 - China plans to shift to a U.S.-style registration system for stock market flotations on the Shanghai and Shenzhen exchanges within two years, the cabinet said.

The PBOC has suspended new applications for the Renminbi Qualified Domestic Institutional Investor (RQDII) investment scheme, which is seen to avoid capital outflows and control risks of complicated products.

** Nov 30 - China's yuan was admitted into the IMF's benchmark SDR basket in a win for Beijing's campaign for recognition as a global economic power.

** Nov 18 - Offshore yuan clearing banks and related offshore participant banks had been instructed by the central bank to suspend trading in bond repos and yuan account financing.

For more information about China's authorities' steps during June to October in 2015, please click:

(Reporting by Shanghai Newsroom and Lu Jianxin; Editing by Gopakumar Warrier)