THE securities regulator plans to ease restrictions on the country’s securities companies, as part of efforts to boost the sector as the domestic stock market falters.

The regulator is also considering plans to allow local brokerages to strengthen their presence in the nation’s fast-growing asset management business.

The China Securities Regulatory Commission (CSRC) released a set of draft rules Wednesday, proposing to expand the investment scope of brokerages’ asset management arms, allowing them to engage in margin trading and short selling of securities.

It also proposed allowing these arms to invest in medium-term bills and wealth management products sold by commercial banks.

The CSRC also plans to abolish administrative approvals for aggregate asset management services, which target multiple clients, and introduce a filing system for brokerages, indicating that brokerages can launch such products without preclearing from the regulator.

The regulator is seeking public comment on the draft rules until Sept. 21, it said in a separate statement.

Domestic brokerages have been allowed to resume their asset management businesses since 2004 following a cleanup after some firms posted huge losses.

Currently, brokerages in China are allowed to engage in margin trading and short selling using their own, instead of clients’, money and securities.

(SD-Agencies)