The Chinese government is taking extreme measures.
China is pressing foreign and Chinese-owned brokerages in Hong Kong and Singapore to hand over stock trading records, sources told Reuters, extending its pursuit of “malicious” short sellers of Chinese stocks to overseas jurisdictions.
The markets regulator, the China Securities Regulatory Commission (CSRC), wants the trading records to try to identify those with net short positions who would profit in case of further falls in China-listed shares, three sources at Chinese brokerages and two at foreign financial institutions said.
At its regular press conference on Friday, the CSRC said it had not directly contacted top executives at Hong Kong brokerages. It also noted that it was normal, in the course of an investigation, to reach out to “relevant parties”.
The regulator has declared war on “malicious short sellers” or those it deems are trying to profit from a fall in share prices, rather than adopt a short position as a financial hedge.
“The implied threat by the CSRC is that anything that is not a hedge is a no-no,” said a source in Hong Kong with knowledge of the requests. This person added that foreign brokers were likely to comply as best they could with the requests.
“When the CSRC makes an offer, you cannot refuse it.”
You can tell how bad the collapse will get by what the powers-that-be are willing to do to stave it off. Clearly the Chinese are willing to do anything, and it is no wonder. Lots of young men with no women to marry, no opportunities to pursue, and anger at leaders they feel have screwed them will not end well.
Yes, that “one child” policy baked a catastrophe into the PRC’s cake.
Your right about china. A surplus of lower class men is usually associated with violence and destruction historically speaking. I noticed recently that almost all of the “refugees” entering europe right now are young men of military age. Anyone can look at the pictures and see for themselves. Few people realize just how much of a disaster that’s going to be.