China Futures Tumble on Trust Curbs, Expansion of Short Selling
This article is for subscribers only.
Chinese stock-index futures tumbled after regulators clamped down on the use of shadow financing for equity purchases and increased the supply of shares available for short sellers.
FTSE China A50 Index futures for April delivery fell 6 percent as of 10:47 a.m. in New York, while contracts on the Hang Seng China Enterprises Index lost 3.3 percent. Regulators banned the margin-trading businesses of brokerages from using so-called umbrella trusts and allowed fund managers to lend shares to short sellers, statements on Friday showed.