The China Securities Regulatory Commission (CSRC) has revised the rules on margin trading and short selling in response to the current conditions surrounding China’s stock market. The new rules were released to the public on June 12, 2015 as a draft document for public comment.[1]  These new rules have the potential to ease investor concerns over the volatility of the market as well as bring about more favorable returns when closing out investor contracts.  Since the announcement of the new rules, the markets here in China have fluctuated in response with a 13% decline across the Shanghai Composite Index during the week following June 12th’s market peak.[2]  The new rules address the contract length for margin trading and would allow for an extension of contract terms beyond the current fixed period of six months.  Additionally, the new rules will ease barriers to enter the market and work with securities brokerages in China.
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