China Flash Crash Caused By Single Trader, Says Chinese Regulator

Short interest in the Shanghai Composite Index has surged at a time the index price has also been rising and a recent China flash crash in stocks occurred Tuesday framing the market environment.

Short interest in Chinese stocks at highest level in five years, but stock has been rising recently leaving the question: who is buying Chinese stocks?

On May 25, with the Shanghai Composite Index trading at 2815, short interest in the CSOP FTSE China A50 ETF rose to to 6.1 percent. This short interest was at its highest level since April 2015, just before the June market crash,...