Beijing Stock Exchange launches securities lending and margin trading
13 February 2023 China
Image: AdobeStock/Dariusz Kopestynski
The Beijing Stock Exchange will launch securities lending and margin trading from today, according to a public statement released by the exchange on Friday 10 February.
This will permit securities services companies authorised by China Beijing Equity Exchange (CBEX) group to offer securities lending and margin trading, with trading parties required to report the transactions to CBEX.
The exchange will announce a full list of securities that will be eligible for lending and that can be used as margin via a page on the Beijing Stock Exchange website relating to Information Disclosure — Margin and Securities Lending Information.
Although these details are still to be confirmed publicly, Securities Finance Times understands that stocks in the CBSE 50 Index will be eligible for securities lending and for margin financing.
Stocks will also be eligible that have been listed for at least three months, have an average daily turnover of CNY 3 million (US$0.44 million) and have an aggregate market value of at least CNY 1 billion.
The exchange indicates that this release marks an important step in the development of the CBEX market system by boosting market liquidity, enhancing trading functions and improving price discovery in the secondary market.
This represents part of continuing steps under the supervision of the China Securities Regulatory Commission, the securities market regulator, to expand the range of trading tools that it offers to investors and to create innovative capital-raising mechanisms for small and mid-sized enterprises.
CBEX group provides multi-asset class trading and data services, approved by the Beijing Municipal People's government, and specialises particularly in commodities and resource stocks and in bringing state-owned enterprises (SOEs) to public trading.
This will permit securities services companies authorised by China Beijing Equity Exchange (CBEX) group to offer securities lending and margin trading, with trading parties required to report the transactions to CBEX.
The exchange will announce a full list of securities that will be eligible for lending and that can be used as margin via a page on the Beijing Stock Exchange website relating to Information Disclosure — Margin and Securities Lending Information.
Although these details are still to be confirmed publicly, Securities Finance Times understands that stocks in the CBSE 50 Index will be eligible for securities lending and for margin financing.
Stocks will also be eligible that have been listed for at least three months, have an average daily turnover of CNY 3 million (US$0.44 million) and have an aggregate market value of at least CNY 1 billion.
The exchange indicates that this release marks an important step in the development of the CBEX market system by boosting market liquidity, enhancing trading functions and improving price discovery in the secondary market.
This represents part of continuing steps under the supervision of the China Securities Regulatory Commission, the securities market regulator, to expand the range of trading tools that it offers to investors and to create innovative capital-raising mechanisms for small and mid-sized enterprises.
CBEX group provides multi-asset class trading and data services, approved by the Beijing Municipal People's government, and specialises particularly in commodities and resource stocks and in bringing state-owned enterprises (SOEs) to public trading.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
