China Law & Practice

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New securities lending law requires implementation guidance

Pilot scheme for brokerages allowing margin trading and short selling is expanded

Issue: December 2011/January 2012

At the end of October, the China Securities Regulatory Commission issued two laws governing the financing of securities financing companies, margin trading and short selling.

The Trial Measures for the Regulation of Securities and Loan Lending (转融通业务监督管理试行办法) (the Trial Measures) allows securities financing companies to raise funds through private borrowing or by publicly selling corporate bonds.

The Measures for the Administration of Margin Trading and...

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