Short sellers trigger Shanghai stocks rout

Shanghai Index and the Shenzhen composite were both down 5.8 per cent and 5.4 per cent respectively. The two indices have fallen 30 per cent since June 2015 and is destabilising the Chinese economy at a time when it shows signs of slowing down.

 China’s Securities Regulatory Commission said it had opened a probe into deliberate market manipulation in the securities and futures markets. It is likely to concentrate on short selling.

Stock Index futures are the primary tool for placing bearish bets on mainland stocks