China allows on-line stock trading

Ulhas Joglekar ulhasj at bom4.vsnl.net.in
Sun Apr 16 18:30:38 PDT 2000


Sunday 16 April 2000

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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