China improves margin trading, short selling rules
Reuters
Published Jan 31, 2019 05:21AM ET
China improves margin trading, short selling rules
SHANGHAI/BEIJING (Reuters) - China's securities regulator said on Thursday it would improve the mechanism for margin trading and short-selling, in efforts to satisfy diversified investment needs.
The China Securities Regulatory Commission (CSRC) also said it would adjust risk-management rules for brokerages, encouraging them to make more long-term equity investments.
CSRC said in a statement that Shanghai and Shenzhen exchanges were studying expansion of the securities eligible for margin trading and short selling. In addition, a uniform threshold for margin calls would also be scrapped.
In a separate statement, CSRC said it would allow brokerages to set aside less provisions for risky assets including main index constituents and exchange-traded funds, allowing them to invest more in equities as part of counter-cyclical measures.
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Written By: Reuters
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