By continuing to browse our site you agree to our use of cookies, revised Privacy Policy and Terms of Use. You can change your cookie settings through your browser.
I agree
Search Trends
SITEMAP
Copyright © 2024 CGTN. 京ICP备20000184号
Disinformation report hotline: 010-85061466
SITEMAP
Copyright © 2024 CGTN. 京ICP备20000184号
Disinformation report hotline: 010-85061466
A view of the China Securities Regulatory Commission office, Beijing, China, December 14, 2023. /CFP
China's securities regulator said on Sunday that it will fully suspend the lending of certain restricted shares effective Monday (January 29) in an effort to further optimize market mechanisms.
Restricted shares are often offered to company employees or investors with certain limits on their sale, but they can be lent to others for trading purposes, such as short selling.
According to the China Securities Regulatory Commission (CSRC), the move will give all types of investors more time to digest market information and create a fairer market. In a statement on its website, CSRC said the move also emphasizes fairness and reasonableness, limits securities lending activities and restricts the advantage that institutions have in the use of information and tools.
The CSRC added that it will firmly crack down on illegal activities that use securities lending as a pretext to reduce holdings and cash out.
Meanwhile, the regulator also said it will "limit the efficiency" of some securities lending in the securities refinancing market from March 18.
As its next step, the CSRC said it will continue to strengthen supervision, focus on improving fairness of the system, summarize and evaluate the effects of the policy in a timely manner, maintain market order according to law, to effectively protect the legitimate rights and interests of investors.
(With input from Reuters)