CSRC: brokers forbidden to do off-exchange stock financing or sell umbrella trusts
CSRC: brokers forbidden to do off-exchange stock financing or sell umbrella trusts
BEIJING, Apr.17 (Xinhua) -- Chinese brokerages shall not conduct off-exchange stock financing or sell umbrella trust products in any fashion, China's top securities regulator China Securities Regulatory Commission (CSRC) said on Friday.
According to a statement posted on CSRC's website, Zhang Yujun, assistant chairman of CSRC, said at a meeting with securities dealers on Thursday that margin trading businesses have been growing rapidly in China, and now the entire industry must pay great attention to regulation compliance and risk control when taking part in margin trading businesses.
In a margin trading, investors use their own money for only a portion of their stock purchases, and borrow the rest from brokerages. Umbrella trusts allow investors to secure more financing for stock purchases than normally allowed. (