China allows fund managers to lend stocks for short-selling

[SHANGHAI] China has allowed fund managers to lend stocks for short-selling, in order to increase the supply of shares, the Securities Association of China said on its website on Friday.

Mutual fund companies, as well as asset management businesses of securities firms, are encouraged to lend stocks because the "margin financing business has been growing rapidly, but the business of short-selling has been developing slowly,"the association said in joint statement with the Shanghai and Shenzhen stock exchanges.

REUTERS