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China’s top brokers suspend short selling: SCMP
http://atimes.com/2015/08/chinas-leading-brokerages-suspend-short-selling-scmp/China’s top brokers suspend short selling: SCMP
By Asia Unhedged on August 4, 2015
Much like O.J. Simpson’s quixotic quest across the best golf courses in America to find the real killers of his wife and her friend, Ron Goldman, the Chinese government has upped the ante in its effort to stop those it considers the true villains of this summer’s equity market crash: the “malicious short sellers.”
The government told the two mainland stock exchanges that they needed to impose a ban on same-day margin lending for short selling. The websites of both the Shanghai and Shenzen exchanges announced late Monday that they were instituting a new rule to prohibit investors from borrowing and repaying stocks within the same trading day
Immediately afterward, several of the country’s leading brokerages, including Citic Securities, that they would temporarily suspend short selling to comply with the rule changes and to control risks, reported the South China Morning Post.
Short selling is when a trader sells a stock first, with the expectation of buying it back at a lower price some time in the future.