Chinese brokerages extend bank-securities transfer window to facilitate trading
Chinese brokerages expand bank-securities transfer window in line with Shanghai Stock Exchange’s extension to streamline post-holiday trading
Chinese brokerages are extending the window for bank-securities transfers, following the Shanghai Stock Exchange’s decision to add an extra five minutes as part of efforts to facilitate stock trading amid a market boom driven by Beijing’s historic stimulus package.
Top securities firms including Citic Securities and Huatai Securities told their clients on Monday that they have coordinated with banks to allow for earlier transfers of funds from bank accounts to brokerage accounts, aiming to help investors trade stocks promptly following the market’s reopening after the week-long national holiday.
On Sunday, the Shanghai Stock Exchange said that it would extend the period for designated transactions by an additional five minutes, from 9.25am to 9.30am on each trading day, to allow more investors to participate in the stock market. Previously, the window for designated transactions was from 9.15am to 9.25am, 9.30am to 11.30am, and from 1pm to 3pm.
Designated transactions is a procedure specific to the Shanghai Stock Exchange. When a retail investor opens an account with a brokerage firm, the individual has to tell the stock exchange that it has designated said brokerage firm to help them buy stocks. The move will impact people opening new brokerage accounts and those switching brokerage firms.
Both the Shanghai and Shenzhen exchanges conducted drills on Monday to prepare for the expected surge in market activity, aiming to prevent technical issues and system vulnerabilities.
The A-share market saw a record turnover of 3.5 trillion yuan (US$500 billion) on Tuesday, surpassing the September 30 high. Chinese stocks surged to catch up with gains made in Hong Kong during the week-long holiday. The CSI 300 Index, which tracks the largest companies listed in Shanghai and Shenzhen, closed 5.9 per cent higher, after jumping 10.8 per cent earlier. The Shanghai Composite Index added 4.6 per cent, while the Shenzhen Composite Index gained 9.2 per cent.
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