China's Securities Regulator Implements Short-Selling Restrictions to Counter Stock Market Losses

2024-01-29 32

China's securities regulator has limited short-selling of certain shares as its latest effort to stem heavy losses in the country's stock markets since 2021. The China Securities Regulatory Commission announced it would suspend the lending of restricted shares held by employees and strategic investors that are usually prohibited from trading. This is aimed at short sellers who borrow shares to sell with the hope of buying back later at a lower price.

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