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Shares of Chinese securities brokerages trade higher on Monday after China launched market-making on Star Market.
The STAR Market will officially launch market making on Monday, in a bid to make the board more liquid, vibrant and resilient, the Shanghai Stock Exchange said on Friday.
The first batch of qualified market markers on the Star Market start trading this week, which will cut investors’ trading cost, and improve pricing efficiency, the exchange said. Regulators have approved 14 brokerages including Guotai Junan Securities, Industrial Securities and Sinolink Securities as the first batch of market makers.
The availability of market-making on the STAR Market is a major measure that aims for continued improvement of the muscles of the STAR Market as a testing ground for reforms, the SSE said in the announcement.
On Saturday, the Shanghai bourse organized 14 market-makers to carry out a clearing test of market making on stocks listed on the STAR Market, according to the state-backed China Securities Journal.The market makers took part in an across-the-board trading test for a selection of 50 stocks – or 42 after removing duplicates. The 14 market-makers provided quotes in an active manner and their quotes for the selected stocks all turned out to be effective, the report said, and the test results were in line with expectations.
