China stocks fall as state media reports resumption of short-selling

jueves 24 de marzo de 2016 00:45 GYT
 

* CSI300 -1.0 pct; SSEC -0.9 pct; HSI -1.2 pct

* 35 brokerages resume short-selling, state media say

* News could be another reason to take profit - analyst

SHANGHAI, March 24 (Reuters) - China stocks fell on Thursday morning after state media reported that 35 domestic brokerages have resumed short-selling business after a long hiatus.

The CSI300 index declined 1.0 percent to 3,204.16 points at the end of the morning session, while the Shanghai Composite Index lost 0.9 percent, to 2,982.48 points.

Many Chinese financial institutions voluntarily halted margin lending and stock shorting activities during China's mid-2015 stock market crash, in response to heavy pressure from Beijing.

While short selling was never made completely illegal, state investigations into "malicious short-selling" combined with restrictions on same-day shorting implemented in August had a chilling effect.

Analysts say that on resumption, the volume of the business, which allows investors to sell borrowed stocks and profit from price declines, is expected to be negligible. But its resumption could have a psychological impact on a market facing increasing selling pressure.

"The market has had a solid rebound over the past month, so the news could give some investors another reason to take profit," said Zhang Xiaochun, analyst at Guolian Securities Co.   Continuación...