China to Investors: Don’t Forget That Stocks Can Lose Money Too
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After the longest-ever rally in Chinese equities, investors are getting a reminder that the $7.3 trillion market isn’t just a one-way bet.
China’s securities regulator jolted traders after the close of local bourses Friday when it banned a source of financing for margin trades and made it easier for short sellers to wager that stocks will fall. The Shanghai Composite Index fell 1.6 percent on Monday, following a tumble in offshore futures and exchange-traded funds linked to the world’s second-largest stock market.