(Bloomberg) — China will halt the lending of certain shares for short selling from Monday, the securities regulator announced Sunday, in a move to support the country’s slumping stock markets.
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Strategic investors won’t be allowed to lend out shares during agreed lock-up periods, the Shanghai Stock Exchange and Shenzhen Stock Exchange said in separate releases following the China Securities Regulatory Commission’s statement.
Read More: Why China Is Trying to Curb Short Selling of Stocks: QuickTake
“The move may have limited impact in terms of stabilizing the market” as some estimates show that such security lending balance is of insignificant size, said Willer Chen, senior analyst at Forsyth Barr Asia Ltd. “Still, this is a good gesture as market participants had been calling for regulators to step in on this front.”
While the bourses didn’t define strategic investors, it typically refers to…
