Earlier this year, some Chinese companies listed in the US found their stock prices plunging as a result of short sellers' actions. Meanwhile, short selling has landed in China on its futures exchange and is being induced by the government to develop and improve its capital markets
New guidelines from China's banking authority open up stock index futures trading to trust companies. However, strict restrictions and stringent qualification criteria have drawn mixed reactions from trust players
The Rules specify the details a lawyer is required to review and verify in cases such as when a securities investment fund management company is to be established, when a change in the shareholders of a securities investment fund management company occurs and when a securities investment fund is to be offered.