CSFC to halt stock market intervention

Regulator says it will continue measures to help maintain stability, avoid systemic risk

China Securities Finance Corp, the State-owned margin lender which played a crucial role in halting the recent slide in Chinese stock markets, is to end its direct intervention in the market and allow market forces to play a bigger role in determining share prices.

The announcement, from the China Securities Regulatory Commission, also said however, that it would continue to take whatever steps were necessary to maintain stability and avoid systemic risk, after the recent sell-off which wiped out $4 trillion in market value between June and July.