China Securities Regulatory Commission (CSRC) in Beijing Photo:VCG

China's stock market regulator on Saturday announces targeted adjustments and optimizations to the rules of securities lending and strategic investors shares lending, which market analysts say are positive and will help boost investor confidence.

The China Securities Regulatory Commission (CSRC) said in a statement that it will take steps to strengthen management of securities lending and restricting lending of shares by strategic investors.

On the borrowers' side, the ratio of margin for securities lending has been raised from a minimum of 50 percent to 80 percent, and the margin ratio for private securities investment funds participating in securities lending has been raised to 100 percent, CSRC said.

On the lending side, there will be moderate tightening of regulations regarding strategic investors' shares lending in accordance with relevant laws and regulations, according to the statement.

The CSRC's strengthened supervision over securities lending is expected to reduce securities lending for short selling, which is significant in boosting investor confidence and activate the capital market, Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co, told the Global Times on Saturday.

China's benchmark Shanghai Composite Index edged down 0.64 percent on Friday, while the Shenzhen Component Index fell 0.99 percent.

Chinese stock market regulator has recently introduced a series of moves targeting financial services, trading and investment. These measures, aimed at boosting investor confidence, will gradually form a stronger coordinated effect, Yang added.

Global Times