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The Beijing Stock Exchange has announced a rules framework for securities lending and margin trading in advance of its proposed launch of trading services in these areas.
In an announcement made through Chinese official press agency Xinhua, the Beijing exchange indicates that these rules will align with those established on the Shanghai (SSE) and Shenzhen (SZSE) stock exchanges, which have already launched securities lending and margin trading services.
According to the Beijing exchange, this development will help to strengthen the pricing function of the market, improve margin liquidity and cater for the diversified trading demand of investors.
Reflecting on its wider listings activity, the Beijing Stock Exchange indicates that 110 companies had listed on the exchange at the start of September, with combined market capitalisation of close to CNY 200 billion (US$28 billion).
Last month, the Shanghai and Shenzhen exchanges extended the range of shares eligible for securities lending and margin financing. SSE added a further 200 names to its list of eligible stocks, bringing this to a total 1000 stocks. SZSE added a further 400 shares, establishing a list of 1200 stocks that are eligible for securities lending and margin trading.
