Shanghai Stock Exchange re-introduces T+0 trading

21 October 2013   Category: News, China   By Asia Asset Management

The Shanghai Stock Exchange (SSE) amended the trading rules for the Shanghai Stock Exchange, on October 18, allowing listed ETFs and currency funds to be traded on a T+ 0 basis. The directive will be effective from December 9. 
The SSE notes that the new measure will be applicable to bond ETFs, gold ETFs, and currency funds. The initiative aims to provide a more comprehensive and flexible trading platform to accommodate growing market demand. 
The SSE and the Shenzhen Stock Exchange had initially introduced the T+0 trading basis in the early 90s, but then changed the mechanism to T+1in 1995 to prevent over-speculation. 
The updated initiative should also bolster bourse operations in the context of block trading and the categorisation of bond ETFs. For example, the measure lowers the threshold for A-share block trading from 500,000 shares or 3 million RMB (US$476,000) to 300,000 shares or 2 million RMB.