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Six brokerages get nod for margin trading

(Xinhua)
Updated: 2010-03-20 10:29
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China's securities regulator announced Friday it approved six securities companies to pilot margin trading business.

The approvals came more than two months after the State Council, the cabinet, gave the green light to pilot the business on a trial basis.

The six securities companies are Guotai Junan Securities, Guosen Securities, CITIC Securities, Everbright Securities, Haitong Securities and GF Securities, said an official with the China Securities Regulatory Commission (CSRC), who asked not to be named.

Related readings:
Six brokerages get nod for margin trading Brokerages apply for margin-trading pilot run
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Six brokerages get nod for margin trading Margin trading licenses on cards
Six brokerages get nod for margin trading Trial margin trading plan issued by March

Margin trading allows securities companies to lend stocks and money to investors.

The CSRC in January issued a guideline for margin trading, saying applicant securities companies should each have at least 5 billion yuan ($732 million) of net capital in the last six months.

Securities companies were also required to use their own funds and securities for the margin trading business.
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