China on Friday authorised its insurers to take part in securities lending, potentially boosting short-selling activities in the country’s stock and bond markets.
Chinese banks, brokerages and mutual fund houses can already conduct the business, lending securities holdings to other market players, such as short-sellers, for interest income.
The China Banking and Insurance Regulatory Commission (CBIRC) published rules on Friday allowing insurers to participate in securities lending.
The full article is available at https://www.reuters.com/markets/europe/china-promotes-short-selling-by-letting-insurers-lend-securities-2021-12-03/