More China Brokerages To Get OK For Margin Trading
China’s securities regulator may allow a second batch of securities brokerages to conduct margin trading and short selling business at the beginning of May, the China Securities Journal reported Monday, citing unnamed sources.
Brokerages including China Galaxy Securities, Shenyin & Wanguo Securities, Orient Securities, Merchants Securities and Huatai Securities, which weren’t chosen as the first batch, will likely receive approval this time, the report said.
The China Security Regulatory Commission (CSRC) gave the green light to six brokerages to pilot the margin trading business on March 19. They are Guotai Junan Securities, Guosen Securities, CITIC Securities, Everbright Securities, Haitong Securities, and Guangfa Securities.
An unnamed official with the CSRC disclosed that if the pilot program went well, the regulator would expand the program step-by-step. The five brokerages that had already applied for the pilot program would be given the go-head if they met the requirement.