JPMorgan Stops China Synthetic Shorts After Regulatory Crackdown
- Bank won't offer synthetic shorts on Shanghai Connect
- Credit Suisse said to cut synthetic shorts of Shangai stocks
This article is for subscribers only.
Some banks are scaling back offerings that enable clients to indirectly wager against Chinese stocks through Hong Kong’s stock exchange link with Shanghai, as China’s regulators clamp down on practices such as short-selling.
JPMorgan Chase & Co. stopped offering so-called synthetic shorts on shares under the Shanghai Connect arrangement, according to an e-mail from its prime brokerage unit to clients including hedge funds this week. Credit Suisse Group AG also cut back on products that enable synthetic short-selling of Shanghai Connect stocks, said two people with knowledge of the matter who spoke on condition of anonymity.