China Targets Short Sellers in Stock-Index Futures Contracts
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China will limit the opening of new futures contracts in an index of small-company stocks to rein in excessive trading and stem a bear market rout.
Investors can buy or sell at most 1,200 new contracts linked to the CSI 500 Index per day starting Tuesday, the China Financial Futures Exchange said in a statement on its official microblog on Monday night. The CSI 500 futures contract for July delivery plunged 8.6 percent at the close. The underlying index slumped 6.5 percent, extending losses to 41 percent since the June peak.