Chinese regulator approves application to suspend securities lending – Xinhua

BEIJING, July 10 (Xinhua) — The China Securities Regulatory Commission (CSRC) said Wednesday that it has approved an application by China Securities Finance Corporation Limited (CSF) to suspend securities lending, which will take effect on Thursday.

Existing securities lending contracts can be extended but must be settled before September 30, the CSRC said in a statement.

According to the CSF, the decision to suspend securities lending is intended to maintain market stability and further strengthen countercyclical adjustment.

Securities lending is the transaction whereby the CSF lends its own securities or securities acquired in accordance with the law to investment firms so that they can carry out securities lending transactions.

The CSRC said it also approved exchanges’ agreements to raise margin requirements for short selling to 100 percent from at least 80 percent, while margin requirements for private equity funds will be raised to 120 percent from at least 100 percent. This new policy will take effect on July 22. ■