Trial business on margin purchase begins in April

11 qualified securities firms were reported before the Spring Festival to have applied for trial margin purchase or short sale transactions, some of them would be approved after examination from the inspection team with CSRC, <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Shanghai and Shenzhen stock exchanges.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Some securities firms predict the result will be clear in March and businesses begin in April. Research institute with BOCI demonstrates the resolution and strength of the regulator that the work has been fully prepared even during the Spring Festival.

The most concerns are the subject matter of the transactions, mortgages and conversion rate, besides the list of the securities firms.

As reported, each firm has its own model to operate, and will pick out what in line with that of Shanghai and Shenzhen stock index on 12 in comparison. But the securities shall not be underlied when meeting the suspension of trading or the integration of companies.

The conversion rate of the mortgage is mainly decided by the leverage available in the business, so some firms say the final rate would be lower than the maximum stipulated by the stock exchange, for instance, the rate of 70 per cent for shanghai or Shenzhen index, securities firms would take 50 percent.