Overseas Trading: China Stocks Rally on Short-Selling Crackdown

New short-selling restrictions sent the Shanghai Composite higher, while European stocks stumble

Aug 4, 2015 at 8:21 AM
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Asian markets ended mixed today, despite the latest market-stabilizing efforts from Chinese regulators. Both the Shanghai and Shenzhen exchanges unveiled new restrictions on short selling late Monday, making it more difficult for traders to implement short-term bearish plays. As a result, the Shanghai Composite closed 3.7% higher -- its largest single-session gain in nearly a month. Hong Kong's Hang Seng wasn't able to follow suit, though, easing 0.02% as casino stocks fell on downbeat revenue out of Macau. In Japan, weakness in construction and materials names contributed to a 0.1% drop in the Nikkei. However, South Korea's Kospi added 1%, as investors scooped up low-priced stocks after Monday's slide

With traders still considering yesterday's economic data from the U.S., and with Greek stocks getting pummeled once again, European indexes are sitting in the red at midday. France's CAC 40 was 0.6% lower at last check, and Germany's DAX was off 0.3% after BMW announced poor second-quarter earnings. In London, the FTSE 100 is just 0.2% lower. 

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