精准一头一尾中特平 www.snbil.tw Chinese shares briefly dipped into negative territory early in the session, but recovered and moved steadily higher from mid-morning, with the Shanghai Composite closing 3.7 per cent higher to 3,756.5 and the Shenzhen Composite rising 3.8 per cent to 2,151 as the country's two main stock exchanges and one of its biggest brokers pledged to limit short selling activity.
The gain brought to an end a three-day slide for the two Chinese benchmarks, with the best session for Shanghai stocks since a 4.5 per cent rise on July 10, and the best for Shenzhen stocks since a 5 per cent gain on July 17.
Meanwhile, the tech-focused ChiNext rebounded 6.1 per cent to 2,546.2, a day after it fell 5.5 per cent owing to new incoming rules about online payment processors.
Today was the ChiNext's biggest one-day gain since June 30 and its second-biggest of the year.
As the FT's Gabriel Wildau in Shanghai explains, China's two main stock exchanges issued new rules late Monday forbidding short sellers from opening and closing short positions within a single day.
The exchanges said intraday short selling has contributed to price volatility in recent weeks. The new rules bring short selling in line with the so-called "T+1" settlement system that governs long-only trades, where stock is delivered one day after a transaction is completed.
Citic Securities, the country's largest brokerage by assets, also said it was voluntarily suspending its securities lending business, which is used to facilitate short selling.
Two other brokerages, Great Wall Securities and Huatai Securities, followed up with similar announcements.
另两家券商长城证券(Great Wall Securities)和华泰证券(Huatai Securities)也紧跟着发出了类似的声明。
Analysts say these moves are largely symbolic, as securities lending is rarely used in China due to the high cost of borrowing. Regulators' initial actions against short selling focused on the index futures market, which is much larger and more liquid.
Movements in the main index in recent days are largely driven by the so-called "national team" of state-owned financial institutions buying stock and mutual funds to support the market.
The national team has typically stayed on the sidelines in early trade to gauge sentiment among non-state investors, analysts say.
But when prices threaten to drop too far, they step in to prop up demand.
China Securities Finance Corp and other national team members have at least Rmb2.2tn in funds, but it's not clear how much of that total has already been spend.
中国证券金融股份有限公司（China Securities Finance Corp，简称：证金公司）和其他“国家队”成员至少拥有2.2万亿元人民币资金，但目前还不清楚它们为救市花掉了多少资金。
CSF and other state institutions must be careful not to spend their entire war chest, leaving them unable to provide further aid if markets again fall sharply.