HONG KONG: China stocks rebounded on Thursday after the securities regulator announced further curbs on short-selling to bolster market sentiment. Hong Kong stocks also jumped.
The China Securities Regulatory Commission said on Wednesday that securities re-lending - in which brokers borrow shares for clients to short sell - would be suspended, while margin requirements would be raised for short-sellers.
The regulator also said it would further restrict high-frequency trading to ensure a fair market.
The measures came after a disappointing June consumer inflation print further dampened stock market performance following two months of losses.
At the close, the Shanghai Composite index was up 1.06% at 2,970.39. The blue-chip CSI300 index was up 1.14%, with its financial sector sub-index lower by 0.67%, the consumer staples sector up 1.91%, the real estate index up 2.09% and the healthcare sub-index up 2.78%.
New energy stocks advanced 3.6% to lead the gains. Indexes tracking smaller firms outperformed as the short-selling curbs and restrictions on high-frequency trading benefit mid- and smallcaps more. Shenzhen index ended up 2.35% and the start-up board ChiNext Composite index was higher by 2.06%. CSI 2000 jumped as much as 3.4%.
In Hong Kong, the Hang Seng index was up 360.66 points or 2.06% at 17,832.33. The Hang Seng China Enterprises index rose 1.93% to 6,371.78.
The Hang Seng Tech Index gained 2.7%.
The sub-index of the Hang Seng tracking energy shares rose 1%, while the IT sector rose 2.09%, the financial sector ended 1.97% higher and the property sector rose 2.95%.
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