Shorting China Stocks From New York Could Get Easier

(Bloomberg) Short selling could get a little bit easier in China after the country’s domestic stocks join MSCI Inc.’s big index club. MSCI’s inclusion of onshore-listed Chinese shares next month will be a step toward increasing the pool of stock that’s available to borrow. Share lending in the country is virtually non-existent, compared to the U.S. or Europe where the practice often makes up about 20 percent of daily turnover. In just a few weeks, some $1.9 trillion of index-tracking money linked to MSCI is about to own equities in China for the first time.
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