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China begins margin trading trial
By Hu Yang (chinadaily.com.cn)
Updated: 2010-03-31 13:46
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China launched its margin trading and short selling trial program today on the Shanghai and Shenzhen stock exchanges after four years of preparation, Shanghai Security News reported.
Six securities brokerages, handpicked by the China Security Regulatory Commission, will pilot margin trading business. They are: Guotai Junan Securities, Guosen Securities, CITIC Securities, Everbright Securities, Haitong Securities, and Guangfa Securities.
The margin trading and short selling trial business, together with stock index futures, are innovations by Chinese regulators to diversify the country's capital market.
The day before the official launch of the trial program, CITIC Securities signed an agreement with Jiangsu Winfast Investment and Development Co Ltd, a securities asset management company, offering the latter credit limits of 28 million yuan ($4.1 million) for margin trading and 10 million yuan for short selling, the largest on this market so far.
