China stocks rise sharply despite PBOC unease over margin trading

jueves 16 de abril de 2015 00:57 GYT

* CSI300 +2.3 pct; SSEC 2.0 pct; HSI +0.2 pct

* Market digested negative impacts from index future launches

* Regulators warns of risks, orders checks on margin financing

By Samuel Shen and Pete Sweeney

SHANGHAI, April 16 (Reuters) - China stocks rose sharply on Thursday, erasing early losses, as the red-hot market brushed off the authorities' unease over the levels of margin trading in a market that has jumped 27 percent this year.

The Shanghai branch of China's central bank has ordered commercial lenders to check for risks in their margin trading business, and submit their margin trading accounts and list connected wealth management products.

Last week alone, 273 billion yuan of fresh capital flowed into securities desposits accounts, the third straight week of net inflows, while 1.68 million stock accounts were opened, the highest level on record.

To caution against risks, China's stop securities regulator Xiao Gang urged investors to be "rational and calm" when investing in stocks.

Investors also refused to be put off by the possible negative impact from the launch on Thursday of two stock index futures products <0#CIC:> <0#CIH:>, based on the CSI500 Index of 500 small-cap stocks, and the SSE50 Index of 50 heavyweights.   Continuación...