China Imposes New Rules to Curb Short-Selling Amid Stock Market Struggles
The measures, effective from January 29, 2024, are part of a series of market interventions by Chinese authorities to stabilize the country's struggling stock market.
- China's securities regulator has announced new rules to curb short-selling in an effort to stabilize the country's stock market, which has seen significant losses in recent years.
- The new rules, effective from Monday, January 29, 2024, will suspend the lending of restricted shares, often offered to company employees or investors with certain limits on their sale, but which can be lent to others for trading purposes such as short-selling.
- Additional restrictions on securities lending in the refinancing market are expected to be introduced in March.
- The move follows a series of other market interventions by Chinese authorities, including cutting bank reserves and purchasing exchange traded funds (ETFs) and bank shares.
- Despite these measures, China's stock market continues to struggle amid concerns over the country's economic outlook, including a struggling post-pandemic recovery, a distressed real estate market, mounting debt, unprecedented youth unemployment, and the flight of foreign capital.
Markets Insider 
CNN 
BBC 
Financial Post 
South China Morning Post 
CNA 
