China- China’s A-Share Market Expands Closing-Price Trading- Implications for Funds and Institutional Investors

Short summary

Effective July 6, 2026, China's stock exchanges expanded after-hours fixed-price trading to all A-shares and ETFs, mandated public funds to use closing call auctions for pricing, and raised daily price limits for ST risk-warning stocks from 5% to 10%. These reforms aim to improve price discovery, concentrate trading at the close, and support long-term institutional participation. ETFs stand to benefit from more representative closing prices and efficient rebalancing.

• •After-hours fixed-price trading expanded to all A-shares and ETFs
• •Public funds must use closing call auction for pricing
• •ST stock daily price limit raised from 5% to 10%

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