China’s securities brokerages rally as state media called for more margin trading to stimulate capital market activity

 

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China’s securities brokerages stage a strong rally, with an index tracking the sector compiled by Wind Information surging as much as 2.8%, making it one of the best-performing sectors in the A-share market. 

Several brokerages including Caida Securities, Chinalin Securities surging by the daily limit of 10%. Caitong Securities and Capital Securities are jumping more than 6%.

China’s state-backed media Securities Times said in an editorial that, to improve capital market activity, China can improve the regulations and rules and innovate financial instruments.

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. Read more …

Last month, China’s securities regulator stressed stability in the capital market and vowed to further deepen market reform and opening up in the second half of this year.

The Politburo, the top decision-making body of China’s Communist Party, vowed to stimulate the vitality of the capital market and boost investors’ confidence.

The country’s securities regulator pledged to promote stability in market operations, functions, policies and expectation, keep reasonable and normalized initial public offerings and refinancing and achieve a dynamic balance between the primary and secondary market, said the China Securities Regulatory Commission (CSRC) at its mid-year policy meeting. Read more …