The asset management arms of Nomura Holdings and Daiwa Securities, two of Japan’s top securities firms, temporarily stopped customers from buying and selling Chinese equity funds,Bloomberg reported.
Nomura halted redemptions from three funds and it wont’ take orders for two of them, said Bloomberg, while Daiwa’s fund management unit stopped the purchases and redemptions on two funds that track the A shares in China.
The move came after at least 1,400 Chinese listed firms suspended the trading of their shares in Shanghai and Shenzhen this week to shield them from the heavy selling in both bourses, which wiped out more than $3 trillion in value since the stock market downturn began middle of last month.
The Chinese government has implemented a number of measures to stabilize the market, restore investor confidence and arrest the decline in share prices. At the close of the morning trade Thursday, the Shanghai Composite Index was up 1.3%.
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