: The regulator has been seeking to de-leverage the rampant market, which was propped up by steady investor confidence and rapidly-growing margin trading, according to Global Times China. A draft rule was released by the CSRC on Friday, confining the volume of margin trading conducted by each brokerages to four times their net capital and demanding the clients should be fully aware of the risks in this business. Securities companies were asked not to help illegal lending to share purchases, according to an announcement of China Securities Regulatory Commission released Friday. The CSRC said it aimed to strengthen risk management and protect investors' interests. China benchmark Shanghai Composite Index surged over 60 percent from the beginning of the year, while margin trading also rose high to more than 2 trillion yuan from slightly above 1 trillion yuan at the end of last year. Any violation including insider dealing and activities that facilitate illegal trading is prohibited, the draft said.
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