China to Grant Margin Trading Licenses in March

[2010-03-03 08:51:40]

China will grant licenses for margin trading and short selling for up to seven brokerages later this month. The move signals that the government's pilot programs are moving forward smoothly.

The official China Securities Journal reported that about 11 brokerages are expected to compete for the licenses, adding that the winners will be announced in March. The State Council gave the green light for the pilot program in margin trading and short selling in January. The country's stock regulator later issued detailed guidelines on capital requirements and other rules.

Still, no formal launch date has been announced for either that program or for stock index futures, which are also due to begin soon. Investors are already able to apply for accounts to trade in stock index futures.