Rules re­laxed on mar­gin trad­ing

China Daily (Canada) - - FRONT PAGE -

China’s se­cu­ri­ties watchdog amended pre­vi­ously strict rules on the mar­gin trad­ing busi­ness of bro­ker­ages amid grow­ing con­cerns of the plung­ing stock mar­ket.

The amend­ment can­celed the item stip­u­lat­ing that in­vestors should make ad­di­tional guar­anty in two trad­ing days if the ra­tio of cap­i­tal they bor­rowed from bro­ker­ages reaches the 130 per­cent of warn­ing level, and al­lowed the two sides to de­cide through dis­cus­sion in­stead of com­pul­sory sell-off.

Bro­ker­ages will be able to ex­tend con­tracts with their clients as long as the max­i­mum term is un­der six months, the amend­ment said.

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