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Re: China hunts for 'manipulators' as stocks tumble... and in the U.S.? Something we should do in the U.S: Part of the article: "The China Daily newspaper said on Friday that the CSRC was probing investors who used stock index futures to "short" the market - or bet on prices falling. Sources with direct knowledge told Reuters that the China Financial Futures Exchange (CFFEX) had suspended 19 accounts from short-selling for a month. After market close, CFFEX said it was introducing transaction fees on futures contracts on three indexes and strengthening the market to combat short-selling activities. Guotai Junan Securities <601211.SS>, one of China's top brokerages, said it would suspend lending securities to clients for short-selling and step up monitoring of abnormal trading behavior by short-sellers. Much of the selling of Chinese stocks has been driven by "margin calls", when a brokerage that has extended credit to an investor to buy stocks demands more cash or collateral because prices have fallen. If those margin calls continue, it also could affect other markets as investors need to raise cash. "Some funds have closed their copper positions to send funds back to China, in order to meet their margin payments on stock indexes," said one metals broker in Hong Kong." |
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