China Targets Short Sellers, Raising Concerns Over Financial Market Interference
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China's intelligence agency declared it will target investors who "short" the country's financial markets. This came after a financial work conference led by the Communist Party.
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The agency said financial security is part of national security. Some are concerned this will deter sales and bearish views on markets.
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China's security apparatus has long been involved in financial risk management. This expanded role is to assess and manage predicted growing financial risks.
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However, China must be careful not to create imaginary "enemies" in financial markets. Banning shorts means no point in going long.
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Fundamentally, China should counter shorts by reforming markets so investors feel secure. Bears and bulls must coexist for trading activity.