The Chinese regulator plans to stop lending to restricted shares starting January 29. This is reported by Reuters.
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Restricted securities are not traded like ordinary shares, but instead serve as “compensation” for owners or strategic workers of the enterprise to whom these shares are allocated and assigned to them.
China has decided that it will completely suspend the lending of restricted shares from Monday, January 29, as part of the latest attempt by policymakers to stabilize the country's stock markets.
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The China Securities Regulatory Commission also said it would limit the efficiency of some securities lending in the securities refinancing market from March 18.
The Shanghai and Shenzhen stock exchanges said they would suspend securities lending strategic investors starting January 29.
Earlier, the Ministry of Finance wrote that over the past three years, the Chinese stock market has lost $6 trillion. Over the past year, Chinese stocks have seen a precipitous decline. The authorities are trying to save the market, including plans to withdraw 2 trillion yuan from offshore companies.
On the topic: Minus $6 trillion in 3 years: why is the Chinese stock market falling and will the Communist Party be able to save it
