New securities lending law requires implementation guidance
November 16, 2011 | BY
clpstaff &clp articlesPilot scheme for brokerages allowing margin trading and short selling is expanded
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 Short Sale of Securities of Securities Companies (证券公司融资融券业务管理办法) (the Measures) make official a pilot scheme allowing select brokerages to engage in margin trading and short selling by expanding the scheme to other brokerages that qualify.
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