More importantly, the financial barriers that surround China's economy, such as its closed capital account, restrictions on currency trading, and prohibition on short-selling, mean that shares in China trade at different prices from those with identical rights listed on other overseas exchanges.

ECONOMIST: The Shanghai Stock Exchange

So the prohibition won't in theory prevent hedge funds and other investors short-selling French and Italian banks, for example, through offshore exchanges.

BBC: Can a ban on speculation strengthen Europe's banks?