Curbs placed on intraday short-selling
Chinese securities regulators placed curbs on intraday short sellers in a move aimed at further stabilizing the world’s second-largest equity market.
Investors who sell borrowed shares must wait one day to pay back their positions, according to statements from the Shanghai and Shenzhen stock exchanges..
The regulatory move prevents investors from selling and buying back stocks on the same day, a practice that may “amplify abnormal fluctuation in stock prices and affect market stability,” said the Shenzhen bourse on its official microblog.
China already bans investors who buy shares from selling them until the next day and now such intraday trading restrictions have been expanded to short sellers.
Securities watchdogs have unveiled a string of policies to shore up the market, as the benchmark Shanghai index fell 30 percent from its June 12 peak.