China’s securities regulator is stepping up scrutiny over leveraged trading, banning securities brokerages from aiding grey-market margin financing and warning against risks of another credit-fuelled bubble.
The China Securities Regulatory Commission (CSRC) said on Wednesday that its branch in eastern Zhejiang province last week held a meeting with local brokerages, warning against potential risks associated with grey-market margin financing - investors borrowing money outside China's brokerage system to buy stocks, and banning brokerages from doing any form of business that could facilitate such financing.
During the meeting, regulators urged brokerages to learn the hard lesson from . . .
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