The American Dream lives on... in CHINA!

Bloomberg reports this morning that China has approved short selling just as the US and pretty much the whole rest of the world is imposing short selling restrictions, including outright bans.  (Larry Kudlow would approve.)  Strong rumours of this development yesterday sent Shanghai markets higher yesterday - ver-r-ry innnnteressstink.

Absolutely classic timing.

------------

China Approves Short Selling, Margin Lending to Develop Market 

By Zhao Yidi and Zhang Shidong

Sept. 26 (Bloomberg) -- China's cabinet agreed to let investors buy shares on credit and sell borrowed stock to help develop Asia's second-largest market after prices and trading volumes slumped, an official familiar with the plan said.

The State Council signed off on a China Securities Regulatory Commissionplan submitted this month to allow margin lending and short selling, said the official, who declined to be identified as he isn't authorized to speak on the issue.

China's action contrasts with regulators in the U.S., Europe and Australia that have banned short selling in the past week to shore up financial shares battered by the global credit squeeze. China's government is betting the changes will boost trading without spurring further declines after state share buybacks helped the CSI 300 Index rebound from a two-year low.

[REST OF THE ARTICLE HERE.]

.
::