Big Funds unable to short sell now
$Hang Seng Index (800000.HK)$ CSRC officially approves #China Securities Finance to halt securities lending business, and vows to strengthen supervision of programmed trading.
FTSE China A50 Index futures rose as much as 0.26% after the announcement as the Chinese market closed.
This is a piece of bullish news for Chinese investors, as they have long hoped that regulators would restrict and ban securities lending transactions to reduce short selling in the market and crack down on algorithmic short selling. Their demands have now been formally addressed.
FTSE China A50 Index futures rose as much as 0.26% after the announcement as the Chinese market closed.
This is a piece of bullish news for Chinese investors, as they have long hoped that regulators would restrict and ban securities lending transactions to reduce short selling in the market and crack down on algorithmic short selling. Their demands have now been formally addressed.
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Pinkki_doll : Not a good thing, will become less volatility.
MrM OP Pinkki_doll : Not good for short term traders. Good for long term play.
Pinkki_doll MrM OP : For a healthy market, they should not doing this. Like US market, they can keep break new high not because they have many rules on it. China set this kind of rules, just let the foreigner leave their market. Today I can set this rule, tomorrow I can set another rule. No freedom at all.
MrM OP Pinkki_doll : Nope it works in terms of boosting the stock market. Look at South Korea, their stock market rally with short selling ban.