Regulator said to mull allowing rollover of margin trading for A-shares

The China Securities Regulatory Commission may allow Chinese brokerages to extend margin trading and short-selling contracts with clients up to two times for six months each, Bloomberg reported, citing unnamed sources. “By allowing rollover, the CSRC may want to curb short-term speculation and ease volatility as investors don’t have to sell their holdings when the market is not in their favor,” said Zhang Jian, a strategist at BOC International Holdings. “The regulator is trying to put in place a fundamental mechanism of margin trading rather than simply tighten or loosen it.”