China Could Be Considering A Ban On Hedge Funds

The China Securities Regulatory Commission and the People’s Bank of China have introduced a wave of measures to try and revive China’s fledgling financial markets over the past year. 

The CSRC has sought to limit stock index futures trading, has banned short selling, cut margin ratios, banned insiders from selling large blocks of stock and detained several hedge fund managers for betting against the market. The regulator also tried to introduce a “circuit breaker” mechanism to limit stock market losses at the beginning of the year. However, this experiment failed in spectacular fashion when, after just three days of being in place, the CSRC was forced to deactivate the “circuit breaker” following three days of heavy selling as sellers all rushed for...