Equity curbs herald capital market reform

More steps likely, to boost supervision, level playing field, restore confidence

China fully suspended the lending of restricted shares on Monday, indicating that regulators are taking serious steps to restore investor confidence, with additional measures anticipated soon, experts said.

The move will help level the playing field for smaller investors while limiting short selling, as part of the unfolding fundamental reforms that prioritize the interests of investors, they said.

Restricted shares, usually owned by listed company employees and early-stage investors, are subject to restrictions on transfer in a specified period to prevent excessive volatility or insider trading.