Caixin
Caixin Global – Latest China News & Headlines

Home >

TRENDING
Popular WeChat Account Valued at 2 Billion Yuan Snapped Up By Education Firm
Vietnam Welcomes Companies Moving Production from China
China’s Legislature Passes Landmark Foreign Investment Law
LATEST
Tencent Quarterly Profit Sags, to Pay Dividend
Former Tencent AI Chief to Head New Sinovation-Backed Hong Kong Lab
U.S. Trade Delegation to Visit Beijing on March 28-29, China Says
The Fall of a Mysterious Private Villa in a Protected Wilderness Area in China
More Party Discipline Inspections Are Coming, With Focus on Central Government Institutions
China to Draft Value-Added Tax Law This Year
China Construction Bank Names New President
China High-Level Economic Forum to Focus on Opening Up
China Telecom to Invest 9 Billion Yuan in 5G This Year
People’s Daily Head Leaves for High-Level Position at Beijing’s Liaison Office in Hong Kong
Xiaomi Swings to Profit Amid Lackluster Smartphone-Industry
After Food Scandal, New Rule Requires School Officials to Dine With Students
Like the U.S., China Has Its Own College Admissions Problems
Swine Flu Prevention Moves to the Slaughterhouse
China’s Securities Watchdog Receives 22 Fund Applications Targeting High-Tech Board
Stock Nosedives for Shenzhen Software Company After Activist Dubs It Bubble
Teenage Son Kills Mother to End Her ‘Harsh’ Discipline
China’s New Nasdaq-Style High-Tech Board Starts Taking Applications for IPOs
Chinese Dairy Leader Purchases New Zealand’s Major Milk Supply Co-Operative
New Income Tax Law Takes Bite From Government Coffers

By Charlotte Yang and Zhao Runhua / Feb 26, 2019 02:51 PM / Finance

Photo: Bloomberg

Photo: Bloomberg

Chinese stock investors are trading more as the Shanghai and Shenzhen bourses rebound after months of poor performance. On Monday, total trading volume of mainland-traded stocks — known as A-shares — on the two exchanges together exceeded 1 trillion yuan ($149.6 billion), the largest daily volume since Nov. 27, 2015.

But in the eyes of the securities watchdog — the China Securities Regulatory Commission (CSRC) — this isn’t all good news.

Why?

Reports have been circulating that unregulated margin financing — in which investors use borrowed funds from unregulated channels such as trust companies and online margin financing platforms to buy stocks — is resurgent once again, increasing the risk of market turbulence.

Rampant unregulated margin financing was a big contributor to China’s 2015 stock market crash.

“We have noticed an increase in recent reports of unregulated margin financing (“场外配资”),” the CSRC said in a notice published Monday.

“All securities companies must strictly implement the appropriate regulations regarding brokerage business and margin trading clients, strengthen the monitoring of abnormal transactions, and conscientiously do a good job in technical system security protection,” it added.

Related: Trading Volume of Mainland Shares Tops 1 Trillion Yuan for First Time in 3 Years

Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.