Measures to Maintain a Stable Economy

April 20 China Securities Regulatory Commission restricted disposals of previously non-tradable equities held by big investors in listed firms. Big shareholders who wanted to sell more than 1 percent of a listed firm's total shares within a month had to use a block trading system, coming to specific arrangements with buyers on a deal-by-deal basis.

April 23 The State Council passed a regulation concerning risk control in brokerages which laid the foundation for the build-up of a more stable capital market.

September 18 The State-owned Assets Supervision and Administration Commission said it encouraged financial institutions to repurchase or increase stakes in listed companies. Central Huijin Investment increased its holdings in China Construction Bank, the Industrial and Commercial Bank of China and the Bank of China by 2 million shares each.

September 18 The Ministry of Finance eliminated a 0.1-percent stamp tax on purchasing shares. The tax on shares sales was lowered from 0.3 percent to 0.1 percent in April last year.

October 5 The State Council said it would allow brokerages to launch margin trading and short selling on a trial basis to strengthen the domestic equities market. Haitong Securities became the first to apply for margin trading.

November 10 The State Council announced 10 measures to support economic development and will spend 4 trillion yuan (US585.9 billion) by the end of 2010. The government would adopt "active" fiscal and "moderately loose" monetary policies.

November 21 China Securities Regulatory Commission announced the results for three cases which breached regulations. It confiscated 125 million yuan of the legal representative of a Beijing brokerage firm for manipulating the stock market.

November 26 The People's Bank of China lowered lending interest rates and deposit interest rates by 1.08 percentage points.

December 3 The State Council said it would seek to stabilize the multi-tier capital market in an effort to protect the country's economy from the ongoing financial crisis.

December 31 The Shanghai Composite Index closed at 1,820.81 points at the end of 2008, down 65.39 percent from January.