CHINA: Expanded Scope for China Short Selling

Thursday May 17 2012

Further to the update on 29 March, 2012, regarding China’s efforts to introduce new measures to boost China short selling industry, it has been reported that China will next week begin a trial that will enable brokerages to borrow stocks for clients wishing to conduct short selling.

Furthermore, brokerages will be able to borrow money on behalf of clients for margin financing.

Twenty-five securities companies will participate in the test, along with the stock exchange, fund management companies and China Securities Finance Co., which was set up as an agency to provide funds and stocks for brokerages’ short selling and margin trading.

The news comes amid efforts to bolster the nation’s stock market.

This information will be updated as more details become available