China May Start Margin Trading in Early December, Official Says

China's securities regulator may allow brokerages to start margin trading in early December, an official with the Shanghai government told a conference in Shanghai today.

"The latest news is the China Securities Regulatory Commission will start margin trading in early December,'' said Fang Xinghai, director general of the government financial services office in Shanghai, without giving further details.

China's State Council approved the securities watchdog's proposal to start a trial program of margin trading last month. The regulator didn't announce when it will let brokerages begin the new business, which will allow investors to borrow cash and stocks, and also to short sell.

The regulator will start accepting brokerages' applications for the pilot program on December 1, according to its rules. The CSRC is likely to pick Citic Securities Co., Haitong Securities Co., Guotai Junan Securities Co. and Everbright Securities Co. as leaders of the program, an official familiar with the plan told Bloomberg in October.