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China market rout deepens as regulators target short sellers

Chinese stocks fell again as authorities continued to try to halt the slide.

The country’s main stock index in Shanghai fell 5.8 per cent on Friday, after shedding 3.5 per cent on Thursday, while the Shenzhen Composite shed 5.4 per cent after falling 5.6 per cent the previous day.

The declines came as China’s securities regulator said it had launched a probe into short selling, and there were reports on Friday that the futures exchange was using “window guidance” to urge traders not to short the market.

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