Citic Securities Co. and three other brokerages may be allowed to offer loans for stock purchases as China's government seeks to bolster the market after the benchmark index slumped 66 percent this year. ... The China Securities Regulatory Commission aims to lure investors and expand the nation's capital market as slumping stock values erode trading. Brokerages may earn 6.6 billion yuan ($966 million) of interest income from margin trading and short selling next year, the Shanghai Securities Journal reported Oct. 6, citing an estimate from Haitong. ... At a conference in the Chinese capital today, Shang urged banks to avoid the kind of financial innovation that caused Wall Street to unravel this year under the weight of writedowns of mortgage-backed securities.
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The China Securities Regulatory Commission aims to lure investors and expand the nation's capital market as slumping stock values erode trading. Brokerages may earn 6.6 billion yuan ($966 million) of interest income from margin trading and short selling next year, the Shanghai Securities Journal reported Oct. 6, citing an estimate from Haitong.
At a conference in the Chinese capital today, Shang urged banks to avoid the kind of financial innovation that caused Wall Street to unravel this year under the weight of writedowns of mortgage-backed securities.
China now preparing next crisis.
