China Securities Regulatory Commission (CSRC), the top securities regulator, issued a circular on Thursday to clarify scale of illicit trust accounts to be cleared up and urged brokerages to be flexible in clearing up accounts.
Instead of unilaterally terminating the contracts, brokerage companies should discuss with their clients and adopt other softer practices, including transferring the assets involved to legal accounts or granting them legal access to the market, according to a statement of the China Securities Regulatory Commission (CSRC).
Analysts deem that the regulator's softened tone for clearing up illicit trading accounts may cast positive impact on the stock market. Additionally, the China Banking Regulatory Commission (CBRC), the top banking regulator, held a meeting with multiple senior officials of trust companies on Thursday afternoon, the Shanghai Securities News reported on Friday.
A meeting participant unveiled that the regulator has not stressed that the clear-up work should be finished before September 30, which implied such work may take a slower pace, said the daily.
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