Clearing House Gives Go Signal for Investors to Open Multiple Accounts
In a bold move to help support development and innovation in the capital markets, China Securities Depository and Clearing Co. have allowed investors to open multiple A-share trading accounts. Chinese stocks hit a seven year high which shakes off investors concerns that in spite a looming initial public offering will drag down a recent run for mainland shares.
For now the one person one account restriction for permit investors and normal investors will be cancelled and allowed according to their needs to open a multiple A-share accounts in the Shenzhen and Shanghai bourses. The clearing house also added it will strictly control the process to ensure that only investors that have the real need of multiple accounts will be allowed to open.
The new reform means that investors will no longer face procedures that are complicated when they plan to transfer accounts to other brokerage firms. Now they only need to open a new account with other firms then their old information will be transferred under the new system.