China allows on-line stock trading
BEIJING: China has for the first time allowed authorised securities firms to
trade stocks on-line, the state-run media reported today.
The China Securities Regulatory Commission (CSRC), industry's watchdog, had
enacted a new regulation which allowed authorised securities firms to trade
stocks on-line, it said.
Unauthorised securities firms and other institutions would not be allowed to
engage in this activity, and links with such entities for on-line stock
trading were also prohibited, according to the reports.
Securities firms applying for authorisation must follow strict guidelines
and go through special procedures, they said, adding those authorised are
required to inform on-line investors of all possible risks in written form.
The CSRC said any violation of the regulations would lead to fines,
suspension of business, or even revocation of trading licenses.
China has 10 million internet users and more than 40 million stock
investors. It is estimated that there are 100,000 investors nation-wide
trading in stocks on the internet.
Experts predict that improved internet safety, higher browsing speeds and
greater internet coverage and lower costs will lead to rapid development of
the on-line stock trading in China. (PTI)
For reprint rights: Times Syndication Service
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