Chinese brokerage shares climb after regulators ease rules on some derivatives trading

Citic Securities shares up 8.5 per cent in Hong Kong as investors see broker incomes rising from index futures trading

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Investors at a brokerage in Shanghai. Photo: Reuters

Published: 1:15pm, 18 Sep 2017Updated: 3:36pm, 27 Oct 2017

Chinese brokerage shares advanced on Monday as Chinese regulators relaxed restrictions on index futures trading for the second time since the market turmoil in 2015 that had been partly blamed on such derivative trades.

Citic Securities, the nation’s biggest broker, surged 8.5 per cent to HK$18.30 in Hong Kong and gained 1.9 per cent to 18.38 yuan in Shanghai. China Galaxy Securities jumped 5.6 per cent to HK$7.23 while its Shanghai-traded shares gained 3.4 per cent to 16.34 yuan.

Effective from Monday, the margin requirements for futures contracts on the CSI 300 Index and the SSE 50 Index were cut to 15 per cent of the contract values from a previous 20 per cent, the China Financial Futures Exchange said last Friday after the market closed. Trading costs were also reduced to 0.069 per cent from 0.092 per cent, the bourse said.

CSI 300 futures rose 0.9 per cent at the close on Monday, the biggest gain in three weeks.

“Brokerages will benefit from these easing measures as lots of them have futures broking units,” said Wu Kan, a fund manager at Shanshan Finance in Shanghai.

“Trading volumes of both stocks and futures will probably increase on the back of these measures to normalise the derivative market.”

Chinese brokerage shares climb after regulators ease rules on some derivatives trading

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Citic Securities shares up 8.5 per cent in Hong Kong as investors see broker incomes rising from index futures trading

Citic Securities shares up 8.5 per cent in Hong Kong as investors see broker incomes rising from index futures trading