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Chinese regulator relaxes rules on short selling

China’s securities watchdog and exchanges are increasing the number of stocks eligible for short selling and margin financing, and removed a previous automatic margin call threshold, according to a statement released by the China Securities Regulatory Commission on Friday.

The authorities in January released draft rules including scrapping an automatic margin call threshold, allowing more types of collateral to be used for certain loans, lowering capital requirements for riskier assets and broadening how foreign investors can use their money were among the package of reforms announced  by the CSRC.