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Chinese regulators have implemented curbs on short-selling of stocks to firm up the stock market.
The Shenzen and Shanghai exchanges said Sunday that investors who buy shares will not be able to lend them out for short-selling outside of a lockup period, according to published reports.
The China Securities Regulatory Commission said the rules will “create a fairer market order,” and more limitations on securities (MCHI) (NYSEARCA:FXI) lending will be implemented in March, the Financial Times said.
The Shanghai Composite (SHCOMP) is down more than 10% in the past year and off 2% year to date.