Chinese regulators suspend restricted share lending
29 January 2024 China
Image: gui yong nian
The China Securities Regulatory Commission (CSRC) has suspended the lending of restricted shares.
The move comes in an attempt to increase stability after recent declines in the stock market.
Market-based application for securities refinancing will be adjusted from real-time availability to next-day availability, with further measures set to be implemented from 18 March.
In its statement, the CSRC indicates that this announcement marks another step in the its efforts to exert tighter control over the markets.
In October 2023, the CSRC cancelled the lending of special asset management plans and restricted the range of lending that was permissible in the market.
According to the regulator, these measures will mitigate illegal activities within the market, give investors more time to digest market information and create “a fairer marker order”.
In the next step, from 18 March, the CSRC says it will continue to strengthen supervision in order to “effectively protect the legitimate rights and interests of investors”.
The move comes in an attempt to increase stability after recent declines in the stock market.
Market-based application for securities refinancing will be adjusted from real-time availability to next-day availability, with further measures set to be implemented from 18 March.
In its statement, the CSRC indicates that this announcement marks another step in the its efforts to exert tighter control over the markets.
In October 2023, the CSRC cancelled the lending of special asset management plans and restricted the range of lending that was permissible in the market.
According to the regulator, these measures will mitigate illegal activities within the market, give investors more time to digest market information and create “a fairer marker order”.
In the next step, from 18 March, the CSRC says it will continue to strengthen supervision in order to “effectively protect the legitimate rights and interests of investors”.
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
