China Mulls Letting Four Brokers Try Margin Trading

From Bloomberg:

Citic Co. and three other brokerages may be allowed to offer loans for stock purchases as China’s seeks to bolster the market after the benchmark index slumped 66 percent this year.

Haitong Securities Co., Guotai Junan Securities Co. and Everbright Securities Co. may also start margin trading as early as mid-November under a pilot program by the securities regulator, an official with knowledge of the matter said, declining to be identified because the information isn’t .

The China Securities Regulatory Commission aims to lure investors and expand the nation’s market as slumping stock values erode trading. Brokerages may earn 6.6 billion yuan ($966 million) of interest from margin trading and short selling next year, the Shanghai Securities Journal reported Oct. 6, citing an estimate from Haitong.

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