中国法律博客
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China Margin Trading? I Just Got A Cold Shiver Down My Spine
媒体来源: 中国法律博客

Does this frighten you as much as it does me?

Chinese securities firms are expected to get a clear indication from the market regulator soon on when it would allow margin trading after completing the test runs of the trading networks. (China Daily)

Eeek. I hope the experiment goes well, but I still have very little faith in the stock market here, what with its bubbly nature fueled by leaked stimulus funds and hot money, periodic "corrections" and, I'm guessing, so much insider trading that even Martha Stewart would flinch.

I am being a bit harsh, though. This has been in the works for a while now, and I recall several years ago when the academics and regulators were mulling over plans that there was a great deal of pressure from foreign interests (i.e. Wall Street) to liberalize immediately. I said at the time that they were nuts and that the government was smart to move slowly.

Based on my recommendations, which I believe at the time were limited to being spoken aloud in the presence of one of my cats (the smart one), the government did indeed move slowly.

Things are definitely better now, but I'm still nervous.

At least the experiment is limited:

The commission and interests securities firms can gain would be limited because initially they are only allowed to use their own capital and securities and the number of qualified stocks is very limited[.]

One step at a time.

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