Skip to content
Subscriber Only

Wall Street Pushes For Easier Way to Short Chinese Stocks

  • Stock lending, block trading via stock connect is on wishlist
  • Index inclusion means investors need more tools, says Asifma
A man carrying a kite in the shape of the Chinese national flag walks along the Bund in Shanghai

A man carrying a kite in the shape of the Chinese national flag walks along the Bund in Shanghai

Photographer: Qilai Shen/Bloomberg

Wall Street firms are preparing to lobby China for changes that would make it easier to bet against its stock market through a trading link from Hong Kong, one of several changes the institutions want as Chinese equities become an ever-growing part of global portfolios.

Societe Generale SA said it’s among the banks seeking a relaxation of rules that restrict lending of shares listed in China, a prerequisite for short selling. Citigroup Inc. and Morgan Stanley are also pushing for measures that include clearances for block trades and fewer closures of the stock connect with Hong Kong around public holidays, according to people familiar with the matter.