Short selling set to benefit stockbrokers
The proposed introduction of margin trading and short selling on a trial basis is widely seen as part of government efforts to diversify financial instruments available to market participants and is expected to benefit domestic stockbrokers as their business range is expanded, analysts said.
The expected move follows recent measures aimed at boosting market sentiment, including a reduction in stamp duty on Sept 18 and State-owned enterprises being encouraged to purchase shares in their listed units.
The China Securities Regulatory Commission (CSRC) said on Sunday it would launch margin trading and short selling on a trial basis, with further details on approval procedures for qualified stockbrokers to be announced in the coming weeks.
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