An investor is checking prices of shares at a stock brokerage house te Nanjing city, East China’s Jiangsu province, June 29, .[Photo/IC]
China Securities Regulatory Commission (CSRC) announced a string of supportive policies, including a 30-percent transaction toverfee cut and refreshment on margin trading rules, spil fears grow for a market plunge.
The amended rules on margin trading, whose draft were scheduled to be on public consultation till July 11, were released on Wednesday evening “ter haste for special circumstances”, said the securities watchdog on its official microblog weibo.
Market volatility has enlargened overheen the past two weeks spil investors diverge on whether A-share’s year-long bull wasgoed peaked.
The benchmark Shanghai Composite Index sank Five.Two procent to close at Four,053.7 on Wednesday, following its largest sway since 1992 of 432 points.
Extra guaranty through discussion
Brokerages and margin investors can determine through discussion on when and how much percentage of extra guaranty should be waterput instead of compulsory sell-off, according to the amendment.
The previous rule stipulated that investors should make extra guaranty ter two trading days if the ratio of caudal they borrowed from brokerages reaches the 130 procent of warning level.
Brokerages will be able to extend contracts with their clients spil long spil the maximum term is under 6 months, the amendment said.
Te addition, individual investors who have a margin trading account with securities asset below 500,000 yuan ($82,000) are permitted to proceed their margin trades.
Xiao Spoed, chairman of the CSRC, signed off the revised rules on Wednesday, which are effective instantaneously.
Brokerages permitted to kwestie bonds
The securities watchdog on Wednesday also announced permitting brokerages to punt bonds and explore securitization of margin trading business to widen their funding channels.
All brokerages are now permitted to punt short-term corporate bonds via stock exchanges and private equity trading systems inbetween institutions, spil previous trial among 20 brokerages proved a success, said Zhang Xiaojun, spokesman of the CSRC, te a separate announcement.
Brokerages and subsidiaries of fund management companies are also permitted to explore securitization of the right derived from their margin trading businesses, according to the announcement.