Official: State Council approves short selling, margin lending plan

The State Council has approved plans by the China Securities Regulatory Commission (CSRC) for short selling and margin lending to help develop the domestic stock market, Bloomberg reported, citing an official familiar with the plan. The plan, whose approval comes as domestic share prices and trading volumes have fallen, is in contrast to moves by US and European regulators in the past week to ban short selling to help battered financial shares. Analysts expect the approval of the CSRC plan – reportedly timed to limit its impact on the markets – to attract fresh capital. The plan is expected to be officially announced either before or immediately after the week-long October 1 National Day holiday, the official said.