综合一区欧美国产,99国产麻豆免费精品,九九精品黄色录像,亚洲激情青青草,久久亚洲熟妇熟,中文字幕av在线播放,国产一区二区卡,九九久久国产精品,久久精品视频免费

Business / Policy Watch

Re-lending business gets green light

By Gao Changxin in Shanghai (China Daily) Updated: 2012-08-29 10:02

Securities regulators have mapped out rules to pilot a program allowing securities brokerages to re-lend borrowed money and securities to finance margin trading.

The new move is set to further boost fledging yet fast-growing margin trading in the mainland's stock market, but could further pressure a market that is retreating toward the psychologically important level of 2000 points, analysts say.

The China Securities Regulatory Commission issued a notice on Monday allowing the Shanghai and Shenzhen stock exchanges to start the program, instructing them to choose the right time to launch it, initially on a trial basis.

Under the pilot, securities houses are allowed to re-lend money and securities borrowed from lenders, insurance companies and mutual funds to their clients in margin trading.

China Securities Finance Co has been set up, with registered capital of 12 billion yuan ($1.89 billion), to lend to the brokerages.

The first batch of 11 securities brokerages has got the green light to conduct re-lending business, according to Shanghai Securities News.

Margin trading was first introduced in China in 2010, when investors were allowed to conduct margin trading using their own stocks as collateral.

As of Aug 15, a total of 69 securities companies are able to conduct margin trading and the number of investors has reached 329,500, according to China Securities Finance Co.

The total volume of margin trading was around 1.59 trillion yuan, with 66.4 billion yuan currently being traded.

Margin trading is essential to build what regulators call a "comprehensive" stock market, as it allows short-selling for the first time in the world's second-biggest stock market by capitalization. Short-selling adds to market volatility but allows investors to profit in bear markets.

Wang Jianhui, chief economist with Southwest Securities Co Ltd, believes that the new measure will further boost the volume of margin trading.

"Investors will have more sources of funding and they will trade more, with more funds in hand," he said.

More short-selling could dampen any hopes of a market rebound in the short term.

The Shanghai Composite Index edged up 0.85 percent, or 17.45 points, to 2,073.15 points on Tuesday, after dropping 1.74 percent to a three-year low on Monday. The index is down 2.61 percent this month and 5.74 percent so far this year.

Zhang Zhaowei, a senior analyst with Huaan Securities Co Ltd, wrote in a research note that there is still room for declines.

"Economic growth has shown signs of rebounding in the short term, and the issuing of new shares and the freeing of restricted shares strains market liquidity," he wrote.

Shares of securities companies, however, benefited from the news. Guojin Securities Co Ltd jumped by about 6 percent, suggesting investors believed the new measure will boost industry profitability.

The sector slumped by more than 5 percent on Monday, as a massive amount of restricted shares hit the market.

gaochangxin@chinadaily.com.cn

Hot Topics

Editor's Picks
...
青浦区| 菏泽市| 连山| 金沙县| 平谷区| 武陟县| 夏河县| 理塘县| 青海省| 水城县| 周至县| 宝坻区| 耿马| 改则县| 烟台市| 宁城县| 房产| 上饶县| 汉中市| 青冈县| 聊城市| 博客| 青阳县| 湛江市| 会宁县| 宝山区| 嘉荫县| 杂多县| 乐至县| 辽宁省| 聂拉木县| 巴彦淖尔市| 桂林市| 芦溪县| 攀枝花市| 鹤壁市| 河津市| 松桃| 纳雍县| 广宗县| 日土县|