Recently, major adjustments to the securities lending market rules have garnered widespread attention. It has been reported that, starting from March 18th, the declaration for market-driven securities lending will shift from being immediately available to available the next day, signifying the formal implementation of the anticipated "T+1" model.
This adjustment has sparked a positive reaction from the market. It is generally believed that the implementation of the "T+1" rule for securities lending will bring a series of benefits. Firstly, the next-day availability rule is expected to enhance the efficiency and stability of market operations, reducing the trading risks and fluctuations associated with immediate availability. Secondly, the adjustment in the market-driven securities lending agreement will increase market transparency and predictability, providing investors with a more stable trading environment.
Behind this adjustment, the Securities Regulatory Commission mentioned two main considerations. One is to highlight fairness and reasonableness, reduce the efficiency of short selling, restrict the advantages of institutions in terms of information and tool usage, and provide all types of investors with ample time to digest market information, thereby creating a fairer market order. The other is to emphasize strict supervision, temporarily restrict all restricted shares from lending, further strengthen the supervision of short selling of restricted shares, and resolutely crack down on illegal and irregular practices, such as circumventing rules for reduced holding and cashing out under the guise of borrowing and short selling.
The implementation of this new rule will bring more trading convenience and liquidity to the market, enhancing the efficiency and stability of market operations. As the new rule takes effect, investors should closely monitor market changes, timely adjust their investment strategies, and seize investment opportunities.
