China goes after ‘malicious short sellers’

http://atimes.com/2015/07/china-goes-after-malicious-short-sellers/

China goes after ‘malicious short sellers’
By Asia Unhedged on July 31, 2015

When all else fails blame the “malicious” short sellers.

In order to find the culprits behind the 30% crash in the Chinese stock market this summer, Chinese authorities are pursuing short traders in overseas jurisdictions. Traders who sell short would profit if China-listed shares fall further.

The authorities have told foreign and Chinese-owned brokerages in Hong Kong and Singapore to hand over stock trading records, unnamed sources told Reuters.

The China Securities Regulatory Commission (CSRC), which regulates China’s markets, wants the trading records to identify traders with net short positions, three sources at Chinese brokerages and two at foreign financial institutions told Reuters.