-- Standard Chartered PLC (LON:STAN) suspended new offshore investments by its Chinese clients through a key regulatory program since last week, Reuters reported on Tuesday citing a statement from the lender.
The Asia-focused bank told Reuters that it had suspended new investments under the Qualified Domestic Institutional Investor (QDII) programme for “commercial reasons.”
The move comes as Chinese authorities tighten their hold on local markets to stem capital outflows and help ease a crippling market rout that saw Chinese investors steer clear of local equities.
Beijing had introduced new curbs on short-selling and block share sales, and had also overhauled the China Securities Regulatory Commission to inspire more faith in local investors.
While the measures had helped Chinese stocks rebound from multi-year lows, their rebound appeared to be running out of steam in recent sessions.
The Shanghai Shenzhen CSI 300 and Shanghai Composite index traded in a flat-to-low range on Tuesday.
The QDII programme was established in 2006, and allows certain qualified investors to invest in offshore markets. The programme also allowed Chinese investors to invest in U.S. stock markets, albeit in a limited capacity.
StanChart’s Hong Kong shares (HK:2888) fell 0.2% after the report. The broader Hang Seng index slid 0.8%.