To improve the capital market activity, China can start from improving the regulations and rules and innovating financial instruments, said state-backed Securities Daily in an editorial on Wednesday.
In particular, moderately increasing securities margin trading will play an important role in enhancing the market’s value discovery function and pushing additional capital into the market, it said.
China can further expand the scope of the underlying stocks for margin trading, increase market liquidity and enhance trading activity, it said.
On the other hand, China can consider cutting fees to lower financing and trading cost and enhance the willingness of margin trading and help brining more capital into the market, it said.
Lowering trading cost is conducive to enhancing the enthusiasm of investors in financing, stimulating market trading activity, revitalizing market liquidity and boosting market confidence, it said.