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Post: China Regulator Suspends Lending of Restricted Shares to Curb Short-Selling

China Regulator Suspends Lending of Restricted Shares to Curb Short-Selling

Key Points:

  • The China Securities Regulatory Commission (CSRC) is suspending the lending of restricted shares to curb short-selling.
  • The move is part of the regulator’s efforts to limit short-selling activities amid market turbulence.
  • Restricted shares have certain sale and transfer restrictions, but they can be lent for traders engaging in derivatives contracts, including short-selling.

Elaborate With Insight:

The China Securities Regulatory Commission (CSRC) is taking additional steps to limit short-selling activities as part of its efforts to stabilize the stock market. The regulator has announced that it will suspend the lending of restricted shares starting January 29. Restricted shares have sale and transfer restrictions, making them difficult to trade. However, these shares can be lent to traders engaging in derivatives contracts, such as short-selling.

Hot Take:

The suspension of lending restricted shares indicates the Chinese regulator’s commitment to curbing short-selling practices. By limiting the availability of these shares, the CSRC aims to reduce the downward pressure on stock prices and mitigate market volatility. This move aligns with the regulator’s ongoing efforts to maintain stability and restore investor confidence in the Chinese stock market.


Original article: https://cointelegraph.com/news/china-halts-restricted-shares-lending-short-selling-turbulence

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