China tightens market regulations to curb short selling

The China Securities Regulatory Commission (CSRC) is implementing stricter regulations to address concerns about short selling and market volatility. These measures aim to promote stability and fair play in China’s stock market.

Starting July 22, mainland stock exchanges will enforce increased margin requirements for short selling.

The China Securities Finance Corp. (CSFC), the nation’s leading provider of securities lending, will halt its lending business from July 11 onwards. Existing contracts must be settled by the end of September.

The CSRC has also pledged to rigorously enforce existing regulations against illegal activities within the market.

Attribution: Bloomberg