China Brokerages Gain on Same-Day Trade Optimism: Shanghai Mover
Citic Securities Co. (600030) paced gains by the nation’s brokerages after the Shanghai Stock Exchange said it is considering a change in trading rules that would allow investors to buy and sell a stock on the same day.
Citic, the country’s largest securities firm, advanced 3.8 percent to 10.91 yuan at 1:48 p.m. local time, heading for its biggest gain in two weeks. Haitong Securities Co., the second biggest, jumped 4.9 percent to 11.01 yuan. The Shanghai Composite index advanced 1.4 percent.
The exchange is mulling a move to a “T+0” trading, an unidentified exchange spokesman said yesterday on its Weibo microblogging platform. There is no timetable for allowing T+0 stock trading, Xinhua News Agency reported last month, citing an unidentified official at the China Securities Regulatory Commission, which oversees the nation’s capital markets.
“It’s a good news to have for the brokers and something we definitely will have in the future,” said Zhou Wei, an analyst at Founder Securities Co. “The key is the timeframe and it’s for the CSRC to have a final decision on the matter.”
The regulator didn’t immediately reply to a faxed query on their stance over T+O. China currently operates a T+1 system.
The exchange spokesman said most individual investors are unable to minimize their losses in the event of a big decline in the benchmark index by selling the stocks that they bought on the same day.
China’s stock market was roiled by erroneous buy orders by Everbright Securities Co. on Aug. 16. The CSRC banned the brokerage from proprietary trading for three months and pledged to examine risks in trading systems to prevent such an error from happening again.
To contact the reporter on this story: Weiyi Lim in Singapore at email@example.com