The Other Shoe Drops: Short Selling On The Shanghai Exchange

2010-01-12

Hmm. Just a couple days after Chanos was all over the news talking down the China market (see my post Someone Rich Has An Opinion On China) I see this:

Since the Shanghai Stock Exchange was founded in 1990, Chinese investors have only been able to bet on stock prices going in one direction: up.

That is set to change, however, as the government has approved long-awaited reforms that will allow traders to profit from falling as well as rising markets.

On Friday, the China Securities Regulatory Commission said the State Council, or cabinet, had authorised a trial period for short selling and margin trading, as well as the launch of stock index futures in the domestic A share market. (FT)

I guess the timing of that article was no accident.

Tags: China Business & Economy