Tuesday, August 4, 2015

Day Traders Face Short Selling Restrictions

It’s not an outright ban on short selling, but new rules make it very difficult for day traders in China to sell short. At International Business Times:

The country’s two biggest stock exchanges . . . said that investors who borrow shares must now wait one day to pay back the loans, preventing them from selling and buying back stocks on the same day . . .

The IBT story:

CNBC talked to two analysts about the implications of this move, and they agreed it will add to the confusion.

The short-selling restrictions led to a modest gain in stocks today, and more rule changes are sure to follow as China continues efforts to stabilize its stock market.

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