Chinese police are teaming up with the country’s securities regulator to investigate clues pointing to potentially ‘malicious’ short-selling of Chinese shares, according to state news agency Xinhua on Thursday.

A recent sell-off in China’s stock markets is the first major challenge facing the country since the introduction of margin trading, and is believed to have been at least caused by short-sellers (at least, according to the Government version of it).

china equities v sales

China Police visited securities regulator’s office

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