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Chinese securities brokerages stage a strong rally on Thursday, with an index tracking the sector compiled by Wind Information surging by 3.5%, making it the best-performing sector in the A-share market. Several brokerages including Founder Securities, Capital Securities, Guolian Securities and Shanghai Chinafortune Securities surged by the daily limit of 10%. In Hong Kong, Guolian Securities surged 16.8%, CICC up 3.6%, Guotai Junan up 3.1%.
The Politburo of CPC Central Committee has vowed to stimulate the vitality in the capital market and the China Securities Regulatory Commission has pledged to improve capital market rules and regulations.
State media have called for rule relaxation to boost market activities. China should make efforts to let people have more money in their pocket in and in particular, should try every means to increase people’s income from property and make them make money from stocks and fund, in order to stimulate consumer spending, said state-run Economic Daily in an editorial on Thursday.
To improve the capital market activity, China can start from improving the regulations and rules and innovating financial instruments, and 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, said state-backed Securities Daily in an editorial on Wednesday.
