Posted 10/14/2023, 9:07:00 AM
China Tightens Rules on Short Selling and Securities Lending to Curb Stock Market Misconduct
- China securities regulator announces restrictions on securities lending to tighten scrutiny on improper regulatory arbitrage
- Steps include higher margin requirements and restricting lending by strategic investors and management in new listings
- Rules address growing public outcry against short-selling amid lagging stock market
- Restrictions target securities lending by strategic shareholders in newly-listed companies
- Probe into lending by management/employees of Shandong Golden Empire on debut triggered public discontent