Securities Companies Given Permission to Launch Margin Financing Services

Six domestic security companies will begin offering margin financing services for stocks listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange as of March 31st. The new service allows investors to borrow cash from qualified securities brokers in order to buy securities or alternatively borrow equities from securities brokers in an attempt to profit by short selling. Currently, investors in China's domestic stock markets can only profit by betting on rising stock prices.