Xinhua Silk Road: Guotai Junan finalizes first QFII margin trading and stock borrowing & lending biz on A-share market

BEIJING, Jan. 4, 2021 /PRNewswire/ — Guotai Junan Securities facilitated a qualified foreign institutional investor (QFII) to finalize its first margin trading and stock borrowing and lending business on China’s A-share market Tuesday.

According to the securities broker, the underlying stocks cover shares listed on the main board, ChiNext market, science and technology innovation board which is commonly known as the STAR Market, and etc.

Market players said QFIIs’ participation in margin financing and securities borrowing and lending businesses will be helpful in attracting more high quality capital into the market, improving the long-short balance of the market, expanding investment scopes and increasing market activity as well.

A more diversified set of investment tools is expected to ultimately result in a more active and open financial market which will in turn become crucial new drivers for the financial market reforms and a robust financial system, noted market players.

As a matter of fact, December 29, 2020 marked the first day when QFIIs were allowed to conduct margin trading and stock borrowing & lending business in China. On December 28, 2020, QFII registration and settlement rules reform-related businesses have been available on the Shanghai and Shenzhen stock exchanges.

Guotai Junan Securities, as a long standing market leader in facilitating domestic and overseas investors to access the Chinese financial market, is particularly experienced in margin trading and financing, stock borrowing and lending, and STAR Market stock borrowing. 

Previously on November 2, 2020, Guotai Junan Securities successfully finalized the first securities lending transaction for QFII in China.

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SOURCE Xinhua Silk Road