Video: China Launches Short Selling

China Launches Short-Selling, Margin Trading

Regulators in China hoped that the launch of short-selling and margin trading will support the country's markets. Jerry Lou from Morgan Stanley believes that in the long-term it is necessary for the market but that it won't help during the current financial turmoil.

China opened the door to short selling and margin trading.

Beijing and Shanghai regulators are betting that the new trading flows will buttress Chinese markets.

Morgan Stanley's Jerry Lou told CNBC what the new trade means for China's financial health -- and the fear of a global meltdown.

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Chinese Stocks -- U.S. Exchanges:

Baidu.com
Sina
Sohu.com
NetEase.com
CNOOC (China National Offshore Oil Corp.)

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