China puts “sleeping” stock accounts aside for efficiency
China has withdrawn all of its 20.23 million dormant A-share stock accounts from the trading system by Monday to improve the operational efficiency, the China Securities Regulatory Commission (CSRC) has announced.
With the country’s stock market growing bullish, the number of registered stock accounts on the Shanghai and Shenzhen bourses have rocketed to 129 million by Monday. On Monday alone, 259,777 new accounts were added.
However, more than 20 million, or nearly one sixth of the total accounts have been opened but neglected. These accounts have cash balance of less than 100 yuan, no money in securities balance and engaged no transaction for more than three years.
The dormant accounts have posed adversely effect on the stock market operation and management, according to CSRC.
Since Monday, only a small number of account holders have applied to activate these accounts, said the CSRC.
Source: Xinhua
Copyright Fund China 2009.
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