The China Securities Regulatory Commission (CSRC) is likely to extend the contract period between brokers and their clients for margin trading and short selling to one year from current six months, the Shanghai Securities News reported Tuesday, citing sources from securities brokers. The securities regulator recently launched a spot check on brokerages for such business before releasing revised trading rules, the paper said. The CSRC may also put in place easier repayment requirements in relation to short selling, it said. Margin trading allows an investor to purchase stocks with borrowed money, and short selling allows an investor to borrow securities from a broker to sell. China launched a trial program in April 2010 in tandem with stock index futures.
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