China Economic Review
Charting China’s changing economic terrain · Since 1990

Revisions coming for rules on margin trading, short selling of Chinese stocks

June 7, 2015

The China Securities Regulatory Commission has announced it will revise rules for short selling and margin trading of stocks in order to achieve “orderly development” in these areas, The Wall Street Journal reported, citing a post on the commission’s Weibo microblog Friday. The regulator gave no details on when it would publish the new rules, only stating they would b released “when the time is ripe.” The volume of margin trading, in which investors use borrowed cash to invest in stocks, has hit repeated record highs this year, helping to drive a rally that has pushed the Shanghai Composite Index up 55% for the year so far.

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