Chinese government crackdown on short sellers leads to forced buy-ins and heavy losses

From Google: 2024-07-25 22:21:00

Chinese stock short sellers are closing their positions amid the country’s crackdown on short selling, resulting in elevated levels of forced buy-ins. Over $9 billion worth of stocks have been affected by this unwinding of positions, leading to heavy losses for short sellers facing margin calls.

The Chinese government’s targeted crackdown on short sellers has caused a significant spike in forced buy-ins, resulting in losses for short sellers. Trade data shows that over $9 billion worth of stocks have been affected by the unwinding of short positions, with margin calls putting pressure on traders to cover their losses.



Read more at Google: Chinese Stock Short Sellers Unravel Trades as Crackdown Kicks In – BNN Bloomberg