Broker beware insidious margin trading curbs

Chinese regulators have punished brokers and tightened rules on margin trading. This shouldn't hurt them in the short term but longer term might be different.

Broker beware insidious margin trading curbs

Not so much buyer beware as broker beware.

The Shanghai stock market suffered its worst day for six years on Monday after Chinese regulators tightened rules on margin trading.

On Friday the China Securities Regulatory Commission punished 12 mainland brokers over rule breaches on margin trading.

Before Friday, brokers were apparently hoping for a relaxation of rules regarding margin financing, including a reduction in the minimum assets held...

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