Regulations to check growth in margin financing

New measures taken by the regulatory authorities to curb illegal trading in the stock market have triggered a collapse in the off-market margin financing chain, industry sources said on Monday.

According to a statement issued by the China Securities Regulatory Commission, brokerages have been urged to take more effective steps to enforce the regulations that require the use of real names and national ID numbers.

The moves are aimed at checking instances whereby an individual investor or entity uses multiple accounts registered under false names and ID numbers to rack up or bring down stock prices.