China Tightens Securities Lending Rule to Support Stock Market

China will halt the lending of certain shares for short selling from Monday, the securities regulator announced Sunday, in a move to support the country’s slumping stock markets.

Strategic investors won’t be allowed to lend out shares during agreed lock-up periods, the Shanghai Stock Exchange and Shenzhen Stock Exchange said in separate releases following the China Securities Regulatory Commission’s statement.

Read More: Why China Is Trying to Curb Short Selling of Stocks: QuickTake

“The move may have limited impact in terms of stabilizing the market” as some estimates show that such security lending balance is of insignificant size, said ...