Oct. 24 (Bloomberg) -- Haitong Securities Co. led a rally for Chinese brokerages in Shanghai after the Securities Times reported China has set up a company in charge of short-selling and margin trading.
Haitong jumped 6 percent to 9.04 yuan at 2:14 p.m. local time. Citic Securities Co., the biggest-listed brokerage, surged 4.1 percent to 11.74 yuan.
The company got approval from the government on Oct. 19 and has held its first board meeting, the newspaper said on Oct. 22, citing an unidentified insider. The move signals a step forward towards allowing brokerages to do short-selling and margin trading, the newspaper said.
“Reports about China’s moves on margin trading and short selling are the major reason for today’s rally,” said Lai Haifeng, an analyst at Guoyuan Securities Co. in Shanghai. “That would expand the companies’ source of income.”
--Irene Shen. Editor: Allen Wan
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