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PASLA market profile: China
23 February 2010
The introduction of margin lending and stock index futures in China look likely to be launched this year
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[China]
[margin lending]
[stock index futures]
[CSRC]
It has been a long time coming, but finally China is in the final straight. After more than two years, China’s State Council has approved a trial for margin lending by securities firms and the introduction of stock index futures. So said a spokesman for the China Securities Regulatory Commission in January this year.
Since then, the CSRC has published a series of rules to prepare for the official launch. The programme will be launched for a trial period, for which a number of brokers will be selected. At the end of January this year, the CSRC raised the qualification threshold. A spokesman for the CSRC said that a qualified broker for the margin lending programme must have 5 billion yuan in net capital, higher than the previous threshold of 1.2 billion yuan. Under the new rule, only 11 brokers meet the capital requirement.
Analysts said this showed...
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