NO timetable has been set for the launch of the T+0 settlement, a tool to increase vitality and liquidity of the domestic capital market, China Securities Journal quoted a securities watchdog official as saying yesterday.

    There are no legal barriers, but the settlement model needs smooth coordination, said Wang Xian, deputy head of the China Securities Regulatory Commission’s market department.

    The model can stimulate the market and improve liquidity, but can also cause frequent trading, market fluctuation, speculation and manipulation, Wang said.

    T+0 settlement, which also is known as same-day settlement, means financial products can be bought and sold on the same day. “T” stands for the first letter of the English word “trade.”

    Currently, T+1 settlement is adopted for share trading on the Shanghai and Shenzhen stock exchanges.

    T+1 settlement means shares bought on one day can only be sold from the next trading day.

    The Shanghai bourse in 1992 and the Shenzhen exchange in 1993 introduced the T+0 settlement model, but they shifted to T+1 settlement in 1995 to guard against market risks.

    In a report in China Securities Journal on Monday, Gui Minjie, chairman of the Shanghai Stock Exchange, said the exchange will promote T+0 settlement for blue-chip companies to woo investors. (Xinhua)