Latest News:  
Beijing   Thundershower/Overcast    31 / 24 ℃  City Forecast

English>>China Business

China allows margin financing, stock lending for brokerages

(Xinhua)

08:17, August 31, 2012

BEIJING, Aug. 30 (Xinhua) -- China introduced a new pilot trading scheme to stock exchanges on Thursday, allowing margin financing and stock lending for brokerages in a bid to release new funds into the market after shares dropped to the lowest levels since February 2009.

Under the pilot program, brokerage firms are permitted to borrow money and stocks from banks, funds and insurers, and re-lend them to their clients for margin trading and short-selling business.

As the first step, the program currently involves only margin trading by 11 brokerage houses including Guotai Junan Securities and Galaxy Securities, but it will eventually be expanded to include securities lending to facilitate short selling later when players become more familiar with the new business.

A maximum of 120 billion yuan (18.92 billion) of fresh liquidity is expected to be pumped into two bourses in Shanghai and Shenzhen, where the combined daily turnover stands at around 100 billion yuan.


【1】 【2】 【3】



News we recommend:
Amusement parks boost real estate market Survey shows SOE jobs are top choice CNOOC pushes ahead with Nexen acquisition
The Pain of a Pension Deficit Staying on Target More new grads opt for State firms
Treading Lightly for Fast Growth  Questions raised over stores' price war A fertile ground for overseas banks

Email|Print|Comments(Editor:李倩、厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Youth Day celebrated in North Korea

  2. Moldy burger found in McDonald's restaurant

  3. Joining the 500 Club

  4. Helping hands

  5. 2012 Award Photos---National Geographic

  6. Fantastic! Unique fireworks

Most Popular

Opinions

  1. Taiwan's position key for Diaoyu Islands issue
  2. Carrier not right envoy for South Pacific
  3. Commentary: Another realty boom not needed
  4. Red moon threat reflects hollow fears on space
  5. Japanese diplomat in letter mission
  6. Editorial: Erring on side of caution
  7. Commentary: Transition of economy starts
  8. Chinese abroad must have better protection
  9. 'Great China' in the eyes of a Serbian journalist
  10. Italy's bonds sales key to economic strength

What's happening in China

Air China plane turns back after 'threat'

  1. Bus safety regulation to target GPS
  2. No antivenin shortage: national authorities
  3. Pirated ACCA, CFA textbook ring busted
  4. Environmental assessments go online
  5. Book lovers flock to Beijing for publishing fair

China Features

  1. Regimen: spleen-friendly diets during White Dew
  2. Watch out hay fever during Bai Lu
  3. Man pricked by syringe with HIV
  4. Large windmill in northern Shaanxi Plateau
  5. Japan aids armed forces of China's neighbors

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture