In a bid to further strengthen its risk management over margin trading and securities lending business and safeguard the normal market order, Shenzhen Stock Exchange has recently announced to amend the Clause 2.13 in the SZSE Implementing Rules for Margin Trading and Securities Lending (2015 version).
It is learned that the aforesaid amendments are focused on the clauses in relation to the liabilities liquidation after investors sell out the borrowed securities. The amended rules clear that investors are allowed to repay the borrowed securities, directly or indirectly, on the next trading day upon selling out, preventing intraday swing trading and abnormal price fluctuation thus caused. It is believed that this adjustment is conducive to further regulating the margin trading and securities lending business without influence on its normal development and safeguarding the steady and health development of the markets.