China just took action to reduce stock market speculation

Mario Tama/Getty Images

The China financial futures exchange (CFFEX) just announced a swathe of measures designed to limit market speculation.

The CFFEX says the new rules come into effect immediately, with margin requirements for futures trading raised, along with transaction fees. They are also restricting trading positions in some stock index futures.

Having seen stock futures fall by as much as 10% on both Monday and Tuesday – their maximum daily limit – it’s likely any restrictions will involve short positions.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at