Currently, funds that own 5% or more of a China-listed company must forgo gains from short-term trading, defined as selling shares within six months of buying them, or buying of shares within six months of their sale, according to Chinese securities law.
However, regulators determine short-term trading based on the holdings of each product in the case of Chinese funds, but on the combined holdings in the case of foreign ones.
The China Securities Regulatory Commission (CSRC) plans to also implement product-based short-term trading rules for foreign funds, in order to facilitate foreign investment, according to the newspaper.