Regulatory Authorities ‘Mulling Measures To Jointly Crackdown on Malicious Short Sellers’

• According to ‘China Daily’ Economic news, reporters were told that regulatory authorities are ‘mulling measures to jointly crackdown on malicious short sellers’, which officials have viewed as one of the factors behind equity weakness (source familiar with the matter).
• China officials have been desperately trying to stabilize the stock market, which has been constantly reaching new lows in the past year, down over 40% from peak to trough before the positive bounce on Wednesday.
• Other negative drivers of the Chinese equity market in the past year has been the Covid uncertainty, renewed crackdown fears and geopolitical uncertainty.
• The Hang Seng index is up over 10% since Tuesday’s low, trading back above the 20,000 level.
• Alibaba share prices were up nearly 20% in pre market trading in the US.

Source: Bloomberg/MNI