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China regulator seeks to cap margin trading, short selling

CSRC is looking to contain risks in country's highly leveraged stock market

Published Fri, Jun 12, 2015 · 09:50 PM
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Beijing

CHINA'S securities regulator, seeking to contain risks in the country's highly leveraged stock market, on Friday released draft rules that cap a brokerage's margin trading and short selling business at four times its net capital.

At present, there is no ceiling on how much margin financing a Chinese brokerage can extend.

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