Legislation roundup: Margin trading, stock exchange measures and sexual equality
August 31, 2012 | BY
clpstaff &clp articles &A securities finance programme launched today will boost margin trading while the Shanghai and Shenzhen stock exchanges have clarified rules on securities lending. Shenzhen has also issued the first regional regulations on sexual equality
Margin trading and short selling
China Securities Finance Corporation Limited, Rules on the Re-lending Business (Trial Implementation)
China is stepping up its developing margin trading programme. Eleven securities companies have been allowed to borrow money from the China Securities Finance Corporation, the agency approved by the China Securities Regulatory Commission, starting from August 30 2012 to re-lend it to clients for margin trading. The loan periods are seven days, 14 days and 28 days. Securities lending is also provided for in the Rules but is yet to kick off.
See the digest for more details.
Shanghai Stock Exchange, Implementing Measures for Securities Lending of the Re-lending Business (Trial Implementation)
Shenzhen Stock Exchange, Implementing Measures for Securities Lending of the Re-lending Business (Trial Implementation)
The Shanghai and Shenzhen Stock Exchanges both state that for the trial period securities lenders are limited to institutional investors only and the transactions with be conducted in fixed prices. The exchanges will not accept instructions with specified counterparties or impose charges on the transactions for the time being.
Further reading
Securities Companies, Mar 2010
First regional sexual equality regulations
Shenzhen Special Economic Zone, Regulations for the Promotion of Sexual Equality
Shenzhen has promulgated the first set of regional regulations on sexual equality in China. When an employer is hiring personnel, it may not set requirements based on sex and may not refuse to hire a certain sex or set higher hiring standards for a certain sex based on grounds such as sex, marital status or pregnancy. The regulations will be effective from January 1 2013.
See the digest for more details.
Further reading
PRC Employment Contract Law, Jul/Aug 2007
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