Latest News:  
Beijing   Light rain/Light to moderate rain    25 / 19 ℃  City Forecast

English>>China Business

Equity market a dead end without short sale options

By Zhou Junsheng (Global Times)

13:44, September 12, 2012

On August 27, China launched a pilot refinancing program which is ultimately intended to help securities brokerages expand the scope of their clients' margin trading and short selling activities. Unfortunately though, China's securities regulators are still dragging their heels when it comes to allowing brokerages to borrow securities for short sales amid concerns that an increase in such trading activity could further damage the country's ailing stock market.

Hopefully the government will rethink this position soon however, since the time is right to establish a mechanism to support short sales in the mainland in order to both help local investors hedge against losses from the torrid equity market and push mainland shares closer to their actual value based on their performances.

At present, investors in the mainland can only take long positions in the stock market, which means that investors will turn a profit only if their shares rise in value.

Yet, as sluggishness in overseas financial markets and the country's slowing economic growth batter A shares, fewer and fewer listed companies are seeing their stock prices rise. Without access to short positions and the opportunity to make money during periods of weakness, mainland markets are suffering from a liquidity drought as investors ditch their holdings and sideline their capital until more favorable conditions emerge.

【1】 【2】

News we recommend:
Diaoyu row hurts Japanese car sales in China New Controls in the Making Housing report notes rise in sales
The Price Goes Up and Up Rail projects to spur economy Finance vehicle loans to local govts up in H1
A Treasure Trove of Resources  Kai-Fu Lee, Citron battle heats up Frictions Over Renewable Energy


Leave your comment0 comments

  1. Name


Selections for you

  1. Ground air defense forces conduct live-fire drill

  2. 9/11, return to where nightmare started

  3. Chinese firms ramp up presence in Thailand

  4. The Peacock and Peacock princess Yang Liping

  5. How to Photograph Fall Colors

  6. Gao Xiaosong on America

Most Popular


  1. Commentary: Asia-Pacific integration
  2. Japan shouldn't underrate Diaoyu issue's severity
  3. Discard illusion of friendly ties with Japan
  4. Commentary: EU needs to think big, like APEC
  5. Green economy should not be used as political card
  6. Hongkongers remain confused over identity
  7. 9/11 attack spurred mistaken wartime strategy
  8. Japan lost at sea among shifting priorities
  9. Regaining Diaoyu needs long-term efforts
  10. Expert: China needs more elite servicemen

What's happening in China

Heavy rains add to Yiliang quake woes

  1. Flights beef up security staff after episodes
  2. Awards to sperm donors raised to increase supply
  3. Chinese mainland free of disease likened to AIDS
  4. China staffing more villages with college grads
  5. China gets tough on postgrad entrance exams

China Features

  1. Kim Jong Un, wife inspect Pyongyang Folk Park
  2. China forecasts weather on Diaoyu Islands
  3. PD: APEC members should promote free trade
  4. Miss World Eco-tourism 2012 crowned in Nanjing
  5. 'Voyager of the Seas' sets sail from Tianjin

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture