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In a bid to stabilize the stock market, Chinese regulators have rolled out new restrictions on short-selling of stocks.
Regulatory Measures
The Shenzen and Shanghai exchanges recently announced that investors purchasing shares will no longer be allowed to lend them out for short-selling outside of a specified lockup period, according to reports.
The China Securities Regulatory Commission has stated that these rules aim to “create a fairer market order,” with further limitations on securities lending set to be enforced in March, as reported by the Financial Times.
Market Performance
The Shanghai Composite (SHCOMP) has experienced a decrease of over 10% in the past year and is currently down by 2% year-to-date.
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