China to End Verbal Guidance to Regulate Stock Market

China is set to end the years-old practice of verbal guidance as a way of regulating its stock market, in an effort to reduce trading interventions and create a fairer environment for investors.

The Shanghai Stock Exchange said in a statement (link in Chinese) Friday that it would no longer use this practice, known as window guidance, to “reduce trading obstacles and unnecessary interventions, so that the market can have a clear view of what to expect from regulators.”