China’s securities regulator said it would suspend brokerages from borrowing shares for lending and cap the size of the so-called securities re-lending business, as part of further efforts to curb short-selling, according to an article from Reuters published by XM.
The watchdog will also ban securities lending to investors who sell stocks on the same day of purchase, and vowed to crack down on illegal arbitrage using short selling.
The fresh measures came a day after the China Securities Regulatory Commission (CSRC) vowed “zero tolerance” against malicious short sellers, warning those who dare flaunt the law will “lose their shirts and rot in jail”.