Business / Markets

No timetable for T+0 model: CSRC official

(Xinhua) Updated: 2014-03-05 15:39

BEIJING -- No timetable has been set for the launch of the T+0 trading model, a tool to increase vitality and liquidity of the capital market, a securities watchdog official told Wednesday's China Securities Journal.

There are no legal barriers, but the trading model needs smooth coordination, said Wang Xian, deputy head of the China Securities Regulatory Commission's market department.

The model can stimulate the market and add fluidity, but can also cause frequent trading, market fluctuation, speculation and manipulation, Wang said.

T+0 means financial products can be bought and sold on the same day. "T" stands for the first letter of the English word "trade".

Currently, T+1 is adopted for share trading on the Shanghai and Shenzhen bourses. T+1 means shares bought on one day can only be sold from the next trading day.

The Shanghai bourse in 1992 and the Shenzhen stock exchange in 1993 introduced T+0 models, but they shifted to T+1 in 1995 to guard against market risks.

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