The China Securities Regulatory Commission (CSRC) has resumed preparations to introduce margin lending and short selling for mainland stocks in an effort to bolster the A-share market, the South China Morning Post reported. The Shanghai and Shenzhen bourses have been asked to provide detailed plans for the derivative products, which allow investors to borrow from brokers to buy shares and borrow shares from trading houses and sell them, respectively. In May, to avoid turbulence ahead of the Olympics, the CSRC delayed the initial plan to allow margin trading and shorting. Last week the regulator canceled the stamp duty on stock purchases and allowed the government fund Central Huijin to buy greater portions of companies to prop up the market, which has jumped 17% since the measures were introduced.
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