Hong Kong
CNN
—
China’s top securities regulator has limited short-selling, in its latest effort to stem a protracted $6 trillion-dollar stock market rout that began in 2021.
The China Securities Regulatory Commission announced Sunday it would “fully” suspend the lending of restricted shares on bourses in mainland China.
The curbs, which came into effect on Monday, will impact shares that are held by company employees or strategic investors and are prohibited from being traded in the stock market for a certain period, but can still be lent to others for short-selling.
Short sellers borrow shares from a broker, then quickly sell them with the hopes of buying them back later at a lower price before they have to return the shares.
The regulator also told securities financing firms that borrow shares from…
