China Cracks Down on Short Sales, Quants to Boost Stocks – BNN Bloomberg
From BNN Bloomberg: 2024-07-10 20:20:00
China implements extreme measures to curb short selling and quantitative trading ahead of key economic policy meeting. Margin requirements for short selling raised, securities lending suspended, in a bid to boost market facing $1 trillion drop since May. Regulations seek to limit market risks, but long-term impact may be limited amid broader economic concerns. Regulator’s latest moves align with previous efforts to scrutinize trading activities and offshore investors. Market may see changes in long-short strategies and reduced returns. Securities lending value has halved since 2023.
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