Similar to the restrictions US regulators instituted during the 2008 financial crisis, China has placed restrictions on short selling. Investors in China now have to wait at least one day to cover their short. China believes this will lessen the volatility in the market-----but if the US financial stocks in 2008 are any example, this strategy may not be effective. It may prove to be tougher than the Chinese government thinks to curb the recent market volatility.