Chinese authorities have 'asked' funds to restrict short selling stock index futures

<p>Reuters citing unnamed sources for the latest Chinese stock market manipulation effort:</p><ul><li>regulators have asked funds to restrict short selling of equity index futures</li></ul><p>Shanghai Composite update:</p><p>More added:</p><p>Two sources, spoke on condition of anonymity</p><ul><li>
A hedge fund manager said he received calls from China's financial futures exchange, cautioning against reckless short selling, especially "naked" short selling conducted not for hedging purposes.
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Another hedge fund source said the exchange had informally asked his firm recently not to short sell for speculative purposes. </li></ul><p>Chinese regulators approached for comments did not respond, says Reuters. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.