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China: Stocks rise as Beijing steps up crackdown on short-selling
[HONG KONG] China stocks rose sharply on Tuesday after Chinese authorities announced new steps to curb short-selling, as part of their raft of steps to support share markets that lost more than 30 per cent of their value after a June peak.
The Shanghai Composite Index climbed 3.7 per cent in its biggest daily gain since July 10 to end at 3,756.54 points, ending three straight days of loss.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 3.1 per cent, during its third consecutive session of gain, and closed at 3,948.16.
Both the Shenzhen and Shanghai stock exchanges unveiled measures that make it more difficult for speculators to profit from hourly gyrations in stock prices.
The markets regained ground as major brokerages Citic Securities and Huatai Securities said they would temporarily halt their short-selling services. They were joined by smaller rival Great Wall Securities.
Analysts said some investors took to the sidelines in the volatile market, waiting to see the government's next move.
China's Commerce Ministry said import growth is likely to remain at a low level on Tuesday, just a day after a private survey showed China's factory activity shrank more than initially estimated in July.
Packaging materials distributor Shanghai Zijiang Enterprise was Tuesday's biggest gainer in the Shanghai index, surging 10 per cent. In Shenzhen, shares of dye intermediates provider Hebi Janxi Chemical and plastic products maker Anhui Guofeng Plastic jumped 10 per cent.