Arab Today, arab today china to double deposit for stock margin trading
Last Updated : GMT 10:24:43
Arab Today, arab today
Arab Today, arab today

China to double deposit for stock margin trading

Arab Today, arab today

Arab Today, arab today China to double deposit for stock margin trading

China will double the deposit required for investors
Shanghai - AFP

China will double the deposit required for investors to borrow funds to trade stocks –- known as margin trading -- the Shanghai stock exchange said Friday, as authorities seek to limit a practice that created a massive market bubble.

Both the Shanghai and Shenzhen stock exchanges will increase the minimum requirement for margin trading to 100 percent from 50 percent, the Shanghai bourse said on its official microblog. That means investors must have the same level of funds in their accounts as the amount they want to borrow.

Margin trading was behind a stock market rally that sent the Shanghai index up 150 percent in a year, before it crashed in June.

The announcement of the new limits came as the Shanghai market rebounds, with the benchmark index now up 22 percent from its recent low in August.

"The regulators want margin trading to increase in an orderly manner," Wu Kan, a Shanghai-based fund manager at JK Life Insurance, told Bloomberg News.

Margin trading, a practice through which investors only need to deposit a small proportion of the value of their trades, potentially generates bigger profits but also exposes them to bigger losses.

"In order to realistically protect investors' legal rights and prevent systemic risks, it is necessary to... lower leverage appropriately in order to push the healthy and sustainable development of the market," the exchange said in its statement.

The outstanding balance for margin trading of the Shanghai and Shenzhen markets combined had surged nearly 30 percent to 1.17 trillion yuan ($184 billion) as of Thursday from the end of September, data showed.

The Shanghai market closed down 1.43 percent on Friday before the announcement.

"While in the short term this decision could impact the equity market, in the mid- to long-run it would help decrease volatility," Gerry Alfonso, a sales trader at Shenwan Hongyuan Group in Shanghai, told Bloomberg.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china to double deposit for stock margin trading Arab Today, arab today china to double deposit for stock margin trading

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china to double deposit for stock margin trading Arab Today, arab today china to double deposit for stock margin trading

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iraq's Barzani isolated by his drive

GMT 04:36 2017 Tuesday ,24 October

Iraq's Barzani isolated by his drive
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Lost Australia diver swam miles

GMT 19:09 2017 Monday ,23 October

Lost Australia diver swam miles
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU targets German carmakers

GMT 05:41 2017 Tuesday ,24 October

EU targets German carmakers
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today Sherine Reda frustrated of latest terrorist attacks

GMT 09:03 2017 Monday ,23 October

Sherine Reda frustrated of latest terrorist attacks
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'

GMT 08:12 2017 Saturday ,21 October

Donia Abdel Aziz aspires to return to cinema

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 05:27 2017 Monday ,23 October

Travel plea for conjoined twins

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 08:06 2017 Tuesday ,24 October

Second Palestinian mobile provider enters Gaza

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday