Securities companies eye bigger market role

Encouraged by the State Council's statement on capital market, Chinese securities companies could step up efforts to enhance leverage ratio and develop private capital market, said chairman of Citic Securities on Friday.

"Chinese securities firms should increase their leverage ratio and they should be allowed to issue income receipts, and do inter-bank lending, repurchase and bond issuance in the interbank market, "said Wang Dongming, chairman of Citic Securities, on Friday at an industry forum.

Wang also said that largely the government should develop private capital market while securities firms can be allowed to offer products privately by themselves.

The State Council, China's cabinet, released a wide-ranging statement of policy principles earlier this month to promote the healthy development of Chinese capital market.

"The statement provides new drive and institutional guarantee for the innovation of Chinese securities industry," said Wang.

Laws and regulations limits can be obstacles for the innovation of the industry, and the statement offers a good legal environment. For instance, it mentioned that the State Council will promote the amendment of the Securities Law and the first time confirms the institutional arrangements for the development of Chinese private capital market, he said.

Cabinet calls for new share listing system

Reforming the capital market

Chinese shares up on capital market guidelines

Key csrc moves to boost the capital market