China Set to Bolster Short Selling

Performance Trading Concepts »Subscriber's Area-InDepth Trades »IMPORTANT DATA/ANALYSIS
http://www.performancetradingconcepts.com/index.php?topic=20.msg401#msg401

This is very interesting, and leads me to think of two reasons. One would be, they don't believe that they will have a debt issue like Europe and the U.S.A. had and this will back fire on them. Or two, once the debt issue is establish,they want to accelerate the deflation process.Which tells me that they know they will have a debt issue and are trying to conceal this fact at this moment. In my opinion, This sounds like they are preparing for deflation.

* China Set to Bolster Short Selling-Published: Wednesday, 4 Jan 2012 | 6:17 PM ET
http://www.cnbc.com/id/45876823

" China is poised to unveil measures to bolster the country’s nascent short-selling industry in an effort to deepen its capital markets, according to securities officials and fund managers.Beijing will create a new body called the Centralised Securities Lending Exchange to facilitate short selling as early as this quarter. China Securities Regulatory Commission, the market regulator, will be the largest shareholder in the body, which was first mooted last year.Short sellers sell borrowed shares in the hope of reaping a profit by buying the equivalent securities back later at a lower price and returning them to the lender.The practice has been curbed in some markets on the grounds it can exacerbate volatility, and Beijing has care to retain control of its introduction and development. Defenders of the practice say it increases liquidity and provides income for shareholders who are willing to lend their securities.China embraced short selling in 2010, but efforts to promote its use have been hampered by the limited number of shares available for qualified asset managers to borrow. "