China Watchdog Tightens Short Selling Rules to Steady Market

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Chinese shares have been sluggish this year due to increasing pressures on economic growth at home and tariff disputes with its major trading partners

(Bloomberg) — The China Securities Regulatory Commission (CSRC) is tightening rules on short selling and high-frequency trades as part of a crackdown on improper arbitrage and to maintain market stability.

The market watchdog has given the mainland stock exchanges permission to boost margin requirements in short selling, starting July 22. Meanwhile, China Securities Finance Corp. Ltd., the country’s biggest stocks lending provider, will suspend its business of lending securities to brokerages starting July 11, with outstanding contracts to be settled by the end of September, the CSRC added.