In an effort to bolster a struggling stock market, China's securities regulator has implemented further restrictions on short-selling and committed to tighter oversight of computer-driven programme trading, according to a report by Reuters.
The China Securities Regulatory Commission (CSRC) stated that securities re-lending, where brokers borrow shares for clients to short sell, will be suspended, while margin requirements for short-sellers will also be raised to ensure more stability.
In addition, stock exchanges have been urged to establish detailed rules to regulate computer-driven trading, with a particular focus on high-frequency trading.
The moves come on the back of seven consecutive weeks of losses for China's blue-chip CSI300 index, which has been impacted by concerns over the country's economic health.
Since August of last year, China has implemented various measures to discourage short-selling. The latest round of restrictions aims to address investor concerns and stabilise the market, as emphasised by the CSRC in a recent statement.
According to the CSRC, the number of high-frequency trading accounts has already decreased by over 20% this year, totalling around 1,600 by the end of June.
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