The US ban on short-selling financial stocks just expired last week. And during most of the 2-week duration stocks plummeted anyway. The WSJ had an article on it where several large financial bigwigs admitted it was a farce and a bit like "having a big glass of orange juice only to have a sugar crash a few hours later".
But while the rest of the world is scrambling to shore up its financial markets through bailouts, short-selling bans, and de-leveraging balance sheets, China announced a trial introduction of margin trading and short selling.
In the announcement, the China Securities Regulatory Commission didn't refer to the current global economic crisis, but said it plans to introduce "new vitality" into the stock market.
Isn't is ironic that even the "communist" Chinese have a stock market more open and free than our own?
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