After 15 trading days of rises, purchase volume under margin financing business on China's Shanghai and Shenzhen stock exchanges fell on Monday, the first day to implement a stricter 100-percent margin ratio requirement for such business.
The purchase under the business stood at 56.4 billion yuan and 53.8 billion yuan on Shanghai and Shenzhen bourses on Monday, 11.4 billion yuan and 14.4 billion yuan less than that on the previous trading day, respectively.
Balance of margin financing business on Shanghai and Shenzhen bourses reached 724.9 billion yuan and 490.1 billion yuan, and the bourses saw a net capital outflow of 2.5 billion yuan and 1.3 billion yuan, respectively. In order to ease market turbulences, Shanghai Stock Exchange and Shenzhen Stock Exchange co-released a notice on November 13 about the amendment to the Detailed Rules on Implementation of Margin Trading and Securities Lending Transaction, which stipulated that the minimum guarantee deposit ratio for share purchase under margin financing business would be raised from 50 percent to 100 percent from November 23, 2015.
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