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In order to promote the healthy and long-term development of securities margin trading, with the approval of the China Securities Regulatory Commission, the Shanghai Stock Exchange (hereinafter referred to as SSE) today expanded the scope of underlying stocks for securities margin trading on the main board from the existing 800 to 1,000. The adjustment will take effect as of October 24, 2022.
Since the launch of the pilot in 2010, the securities margin trading has been running smoothly overall. The risk management capability of securities companies has been constantly improved, the risk awareness of investors has been enhanced, and the liquidity and activity of the securities market have been increasing. Regarding the number of underlying stocks, the SSE has been following the principle of loosening up and expanding the scope in a gradual manner.
After the expansion of the scope of underlying stocks for securities margin trading on the main board, the market value of underlying stocks on the main board will account for 95% of total A shares in circulation on the SSE main board. This achieves full coverage of the SSE constituent stocks in the CSI 300 Index, as well as 98% and 86% coverage respectively of the SSE constituent stocks in the CSI 500 Index and CSI 1000 Index. Overall, the measures to expand the scope of underlying stocks will help attract incremental capital, enhance market vitality, and improve the liquidity and pricing efficiency of related stocks. This is expected to effectively promote the long-term and steady development of securities margin trading and meet the diverse investment needs of investors.
Next, the SSE will continue to follow the policy of "system building, non-intervention and zero tolerance" and the supervisory concept of "standing in awe of the market, the rule of law, expertise and investors, and forging synergy in comprehensive support for reform, development and stability of the capital market", promote the sound development of securities margin trading, and guide securities companies to conduct proper risk management. Moreover, we remind investors to pay close attention to relevant business risks and establish rational investment concepts.
Notice on Adjustment of Matters Related to Underlying Stocks for Securities Margin Trading
