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China releases draft rules on margin trading

(Agencies)
Updated: 2008-09-10 14:19

The China Securities Regulatory Commission (CSRC) has released preliminary rules outlining the operational requirements for brokers seeking to offer margin trading and other businesses, according to a draft published on the commission's website.

The rules include a provision holding brokers responsible for educating margin investors.

"Securities companies which obtain approval to offer new business categories of securities brokering, asset management and margin trading, should take effective measures in informing investors of relevant laws and risks," according to the draft, which has been released for public comment.

The introduction of margin trading services has been widely anticipated by investors as a measure to encourage trading and prop up prices.

Securities regulator Shang Fulin said earlier that the CSRC will adjust the pace of fund raising exercises and bring forward the launch of margin trading to ensure stability in the markets.