The China Securities Regulatory Commission will test a margin-trading program next month allowing brokerages with at least US$150 million in net assets in the most recent six months to sell borrowed stock and to take out loans to buy shares. A brokerage also must have been in operation for three years and be endorsed by the China Securities Association. The regulator did not specify a margin limit or the maximum investors can borrow, but brokerages cannot offer investors loans at rates lower than the central bank's lending rate. Investors can open accounts with only one brokerage at a time.
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