A move by international regulators to renew action against short selling may have a limited effect on arresting the slump in financial equities, and could be missing the mark over the true cause of rapid share price falls, analysts have warned.

In a teleconference yesterday, the International Organisation of Securities Commissions Technical Committee announced that it would take co-ordinated action against short selling and other unregulated markets. The move comes on the heels of the spectacular dive in Citigroup's share price last week, when it lost 26% in one day.