A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
China intends to roll back curbs on private share placements
China is on the verge of rolling back curbs on private share placements by businesses with the aim of improving their access to funding within the initiative to reduce strains on the country’s businesses and the domestic economy.
In fact, the curbs were put in place by watchdogs two years ago in the face of worries about abuse by businesses and traders as well as a lack of transparency on such share sales that were below the stock's last openly traded value.
Additionally, the China Securities and Regulatory Commission is working on amendments to the regulations, including limits on the sale of stocks purchased via private placements as well as the mechanism for pricing stocks in private offerings.
In China, private placements rallied five-fold to $172 billion, dodging watchdogs’ controls on initial public offerings and also boosting worries that businesses were raising too much funds for speculative or inefficient purposes.
It backed fresh rules from the CSRC in 2017 restricting the size of such fundraisings to just 20% of a firm’s capitalization, which requires an 18-month gap in between private offerings, and without some sectors altogether.
Nevertheless, the clampdown on private placements meant a great number of businesses had to turn to ramping up debt instead, contributing to the sizeable corporate debt burden in the world’s number two economy.
A long-lasting regulatory clampdown on riskier types of financing as well as debt restricted many businesses’ access to financing in 2018, resulting in the biggest-ever year for onshore defaults and also a steep tail-off in investment, which put pressure on the economy.
More businesses than ever are missing payments in 2019, highlighting an ongoing cash crunch as the Chinese cabinet intends to give up broad policy easing.
The US showed strong retail sales for August despite the spread of the Delta virus strain. As a result, the US dollar rocketed and gold dropped by 2286 points in half an hour after the release.
The Kansas City Federal Reserve announced Friday the annual Jackson Hole symposium will be held virtually, a reversal from prior plans that saw a modified, in-person program…
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.
The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!