Expanding securities margin trading reported

The balance of securities margin trading accounts in China reached 145.9 billion yuan ($23.46 billion) by March 11, up 70 percent from 85.6 billion yuan by the end of 2012, according to Wind Information Co Ltd, a financial information services provider.

The number of financing securities accounts reached 1.1 million, among which 3,821 are institutional accounts by the end of February, according to the China Securities Depository and Clearing Corp Ltd.

The expanding volume of financing securities will make financing securities a major business for many security brokerages in China in 2013, the Securities Times reported on March 12.

A source with a brokerage said the pilot program of shorting securities that was launched in the end of February will expand sources of securities margin trading, and will also expand business volume of securities margin trading and increase the income of brokerages.

Both the Shanghai and Shenzhen stock exchanges increased the number of underlying securities of securities margin trading in January. While Shanghai pushed the number from 180 to 300, Shenzhen more than doubled the number from 98 to 200.

The expansion of underlying securities for margin trading will add incentives for brokerages to provide more services to investors, analysts said.