China – CSRC Tries to Talk Hedge Funds Down from Short Selling

China – CSRC Tries to Talk Hedge Funds Down from Short Selling

On 24 January 2024, Reuters reported that China's securities regulator the China Securities Regulatory Commission has asked several hedge funds to restrict short selling of stock index futures.

  • Request by CSRC is part of its wider plans to stabilize the country's declining stock markets
  • China's blue-chip CSI300 Index fell to near five-year lows this week
  • One hedge fund manager received calls from China Financial Futures Exchange cautioning against reckless short selling, especially ‘naked’ short selling
  • Another hedge fund source said the exchange had informally asked his firm not to engage in short selling for speculative purposes