The China Securities Regulatory Commission warned small investors late Friday not to finance stock purchases with borrowed money or property and banned financing through umbrella trusts that provide cash for margin trading in addition to limiting margin trading on risky, off-exchange small stocks, The Wall Street Journal reported. Both the Shanghai and Shenzhen exchanges also issued rules to make it easier for investors to bet against, or short, stocks saying they would push to make more shares available for lending, a necessary step in shorting. Then, in a statement published Saturday evening, the commission said these measures weren’t meant to deter stock investment, and that “the market shouldn’t over-interpret the measures.”
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