Chinese regulators have added further trading restrictions to short selling as the nation continues to contend with the recent unpopularity of its stock market.
According to reports, the China Securities Regulatory Commission said today (6 February) that no new businesses could be established to engage in securities re-lending, in which brokerages borrow shares and lend them to clients for short selling, while existing businesses would be wound up. The CSRC also revealed a ban on lending to investors who sell stocks on the same day of purchase, a loophole used by some brokers to circumnavigate current rules which prevent shares being be bought and sold on the same day of purchase. What happened to China in 2023? At the start of this week (...
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