CHINA: Brokerages permitted to participate in China margin trading and China short selling

Monday August 22 2011

It is being reported that the China Securities Regulatory Commission has decided to roll out a pilot program into a regular business operation, the pilot program in question will allow domestic securities brokerages to participate in China margin trading and China short selling. The CSRC has removed the 5 billion yuan net capital threshold, and grated permission for financial institutions to lend capital or securities to the brokerages.

This information will be updated as further details become available.