Using a set of plausibly exogenous shocks to the funds that Chinese investors have available to purchase shares of stocks and other financial assets, we examine the impact of the shocks to investors’ available funds on the levels of asset prices and market liquidity. We find statistically and economically significant declines in the stock market indexes on the dates investors’ subscription funds are frozen, and significant increases on the dates the funds are unfrozen. Furthermore, we estimate the elasticity of stock market capitalization with respect to the shocks to available funds. Finally, we examine the impacts of the shocks to available funds on measures of trading liquidity and find only very limited impacts.