Xi Curbs Short Selling After Stock Market Plunges

Regulators said the change, which comes into force from Monday, is about “creating a fairer market order.”

More restrictions on securities lending in the refinancing market are expected to be introduced in March. I Photo: Khamenei.ir

More restrictions on securities lending in the refinancing market are expected to be introduced in March.

It comes as the latest in a series of market interventions by the authorities which have so far failed to shore up China’s stock market. China’s $1.24 trillion (£1 trillion) sovereign wealth fund has purchased exchange-traded funds (ETFs) and bank shares, while the country’s largest stockbroker has suspended short selling for some clients.

China’s benchmark CSI 300 Index plunged to a five-year low early last week. The index has now lost a fifth of its value in the last nine months as investors dumped stocks amid concerns over the country’s economy.

Hong Kong’s main share index has also been hit by the rout, with its value down 44% over the past five years. Beijing has been battling to reverse the decline through policies such as cutting bank reserves.

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