20240130-万联证券-策略快评报告_证监会全面暂停限售股出借_强化严监管_2页_397kb

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SEC suspensions on lending of restricted shares will effectively limit short selling activities. The suspension on lending restricted shares will take effect from January 29, with other measures for borrowed shares usage becoming effective on March 18.

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Policy context:
The suspension follows previous measures announced in Oct. 2023 that restricted high-level borrowers. Contribution to this policy's effectiveness:

• 36.5% reduction in borrowing balance by strategic investors following policy implementation.

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Regulatory objectives:

• Improve fairness by reducing institutional informational and technical advantage.
• Reinforce limitations on limited share lending.

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Protection of investors:
The policy is intended to safeguard investor interests by improving fairness and market integrity, thereby enhancing investor confidence and market liquidity.

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Risks:

• Unmet expectations from policy effect.
• Economic slowdown risks.
• Fluctuation in investor sentiment.

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Source:
The analysis is based on an info report released by China's regulator on Jan 28, just before celebrating the nearly complete order reorganization of 2024 stock market.

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