By Mariko OiBusiness reporter
Getty ImagesChina has tightened its financial industry rules as the government tries to halt a deepening sell-off in the world’s second largest economy.
Nearly $6tn (£4.7tn) has been wiped off Chinese and Hong Kong stocks since their most recent peak three years ago.
The China Securities Regulatory Commission (CSRC) says the measures will create “a fairer market order”.
Under the new rules limits will be put on so-called “short-selling” from Monday.
Short selling is when a trader bets that a share or other asset will fall in value. They borrow the asset and sell it immediately with the aim of buying it back later at a lower price and keeping the difference.
Defenders of short selling say it can play an important part in financial markets, by helping find the true value of an asset.
However, some critics see short selling as a ruthless trading strategy that undermines companies.
