China regulator says amending rules on margin trading, short selling

By

China is currently amending rules on margin trading and short selling and will publish them when "time is ripe," the securities regulator said on Friday.

Zhang Xiaojun, a spokesman for the China Securities Regulatory Commission, made the comments at a weekly news conference. He did not elaborate.

Zhang also said that the regulator was considering new rules for crowd funding.

Beijing has traditionally frowned upon informal forms of finance such as crowd funding, but is searching for new ways to boost investment as broad money supply in China, known as M2, has been growing very slowly in recent months.

Earlier on Friday, major Chinese brokerage CITIC Securities Co Ltd moved to tighten margin trading rules for the second time in less than a month.

This offered fresh signs that a government-directed campaign to reduce leverage in China's red-hot stock market is accelerating.

Fresh moves to tighten margin financing requirements are being closely watched because investors have borrowed more than 2 trillion yuan ($322.21 billion) from brokerages to dive into one of China's biggest stock market bull runs.

On Thursday, small-sized brokerage Golden Sun Securities suspended margin financing for purchases of shares listed on Shenzhen's growth board ChiNext .CHINEXTC, triggering panic selling in early afternoon trading, though the market recovered the losses later.

Tags
China
Join the Discussion
More News
No Jail for Medical Student Found Guilty of Raping Drunk

No Jail for Medical Student Found Guilty of Raping Drunk Woman Who 'Couldn't Possibly Consent': He Is 'Young' and 'Talented'

Puerto Rican Server Told to 'Go Back to Mexico' By

Puerto Rican Server Told to 'Go Back to Mexico' by Customers in Racist Note: 'No Tips for Illegals'

Georgia Man Chris Louis Leaves Children at McDonald's

Georgia Dad Left Young Children at McDonald's While He Went to a Job Interview. Cops Were Waiting When He Returned

Kolstad Stoeckel

Minnesota Man Begged Deputies to 'Put One in My Head' After Shooting Sleeping Roommate: Police