Shanghai exhange plans trading changes

The Shanghai Stock Exchange (SSE) has proposed to double the limit of daily share price movements, allow day trading and expand short-selling activities, in order to boost market turnover and increase volatility, according to a recent report. The South China Morning Post said the SSE has suggested allowing stock prices to move by up to 20% from 10% in an effort to improve its trading system. The report, which is based on a survey of investors and comparisons with the New York Stock Exchange, Euronext and the Hong Kong Stock Exchange, said the current daily limit more often curbs rises rather than falls in share prices. Another proposal is to allow day trading, instead of requiring investors to wait at least one day after buying stocks before selling them. Sources say the stock regulator plans to let its futures exchange trade financial futures on stock indices by mid-year. A timetable for the other measures has not announced.