China – CSRC Suspends Securities Lending

China – CSRC Suspends Securities Lending

On 10 July 2024, the China Securities Regulatory Commission (CSRC) approved the suspension of refinancing of securities lending (used as part of short selling).

Background:

  • Securities Lending is when brokers borrow shares on behalf of their clients to initiate short selling.
  • Existing refinancing contracts can be rolled over, but no later than 30 September.

Effective Date: 11 July 2024