Margin trading regulations revised

Regulator forms working group with global index provider MSCI for inclusion of A shares

The rules covering investors' use of margin trading and short selling were relaxed on Friday in a draft document released by the China Securities Regulatory Commission.

Deng Ge, the CSRC spokesman, told a news conference that the CSRC will drop restrictions that are no longer compatible with the current conditions involving margin trading, a practice that allows investors to borrow money to purchase stocks, and short selling, which allows them to borrow securities to sell.