China suspends restricted stock loans due to market turmoil

THE China Securities Regulatory Commission (CSRC) East to suspend THE ready of limit actions In A effort has sidewalk short selling.

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THE Chinese securities regulator has announcement another move has limit short sale activities in the middle of action walk turbulence.

THE China Securities Regulatory Commission (CSRC) would have announcement on It is WeChat account that he will to suspend THE ready of limit actions departure Jan. 29.

Limit actions are subject has certain sale And transfer restrictions. These restrictions are often imposed For business governance Strategies Or as part of A employee compensation plan, SO limiting their sale. However, he can be lent For traders engaging In derivatives contracts, including short selling.

As by THE CSRC statement, THE new rules are destined has "emphasize justice And reasonableness, reduce THE efficiency of securities ready, And restrict THE benefits of establishments In THE to use of information And tools, giving all types of investors more time has digest walk information And create A more just walk order. »

China has has been weighing on limiting capital exits. In A previous move, THE country the biggest brokerage stopped ready actions has retail investors And raised margin requirements For institutional investors on Jan. 22 as A result of window advice Since regulators, Bloomberg reported.

> Shanghai Action Exchange Composite Hint performance on THE pass year. Source: Google Finance

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