Guotai Junan Securities facilitated a qualified foreign institutional investor 
(QFII) to finalize its first margin trading and stock borrowing and lending 
business in China's A-share market on December 29, 2020.

According to the securities broker, the underlying stocks cover shares listed 
on the main board, ChiNext market, science and technology innovation board, 
commonly known as the STAR Market and etc.

Market players said QFIIs' participation in margin financing and securities 
borrowing and lending businesses will be helpful in attracting more high 
quality capital into the market, improving the long-short balance of the 
market, expanding investment scopes and increasing market activity as well.

A more diversified set of investment tools is expected to ultimately result in 
a more active and open financial market which will in turn become crucial new 
drivers for the financial market reforms and a robust financial system, noted 
market players.

As a matter of fact, December 29, 2020 marked the first day when QFIIs are 
allowed to conduct margin trading and stock borrowing & lending business in 
China. On Monday or December 28, 2020, QFII registration and settlement rules 
reform-related businesses have been available on the Shanghai and Shenzhen 
stock exchanges, after Chinese regulators publicized rules on domestic 
securities and futures investment by QFII and RMB QFII on September 25, 2020.

Guotai Junan Securities, as a long standing market leader in facilitating 
domestic and overseas investors to access the Chinese financial markets, is 
particularly experienced in margin trading and financing, stock borrowing and 
lending, and STAR Market stock borrowing. 

Previously on November 2, 2020, Guotai Junan Securities successfully finalized 
the first securities lending transaction for QFII in China.

SOURCE: Guotai Junan Securities