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BIZCHINA / Center |
Brokers likely to offer margin trading soon(Agencies)
Updated: 2008-02-26 14:46 China's brokers are expected to offer margin trading soon, the 21st Century Business Herald reported, citing sources close to the matter. The report said Nie Qingping, a commissioner with the China Securities Regulatory Commission (CSRC), recently visited four securities companies in Shanghai, including Orient Securities and Guotai Junan Securities, and reviewed their preparations for margin trading. The visit indicates that margin trading will be launched soon after further checks and improvements to the system, the report said. In December 2006, the CSRC announced that selected domestic brokerages will be allowed to offer margin trading in a trial program. The scope of the trial includes margin trades and the lending of securities for clients to sell. Following the 2006 announcement, CITIC Securities, Everbright Securities and Merchants Securities reportedly filed applications to offer margin trading. The report added that some central government agencies have agreed in principle to set up a new company - China Securities Financial Co. The new company will represent securities companies in obtaining loans from commercial banks. The loans will finance brokers' margin trading operations, the report said. Nie and Wu Qing, another vice director at the CSRC, will be appointed general manager and chairman of the new company, the report added. |
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