The China Securities Regulatory Commission (CSRC) is implementing measures to stem short-selling by suspending the lending of restricted shares.
This announcement comes amid ongoing stock market turbulence in China.
The suspension, effective from January 29, was announced on CSRC's WeChat account.
Restrictions on these shares have usually been applied either as a part of corporate governance policies or within an employee compensation context, thereby limiting their sale.
Nevertheless, these shares can be loaned for use in derivative contracts, including those for short-selling, a practice this suspension aims to curb.