China's securities regulator suspends new securities lending

BEIJING, -- China's securities regulator has suspended new securities lending and strengthened supervision of the business.

As the securities lending balance has reached its upper limit, new business conducted by securities companies will be suspended in accordance with the law, the China Securities Regulatory Commission said on Tuesday.

Outstanding securities lending transactions will be settled gradually, the commission noted.

It will also require securities firms to strengthen the management of their clients' trading activities while continuing to intensify regulation and law enforcement efforts, and it will require them to crack down on illegal practices such as improper arbitrage that utilizes securities lending, it said.

Since the implementation of relevant supervision measures, the balance of securities lending transactions has fallen by 24 percent to total 63.7 billion yuan ($8.96 billion) in value, accounting for 0.1 percent of the circulating A-share market value, the commission added.