CHINA’S securities association will conduct an annual stress test on brokerages this year, China Securities Journal said Thursday, citing sources familiar with the matter.

The Securities Association of China will conduct the test to gauge the companies’ risk-bearing capacity under extreme circumstances such as stock and bond declines and rising bond defaults, among others, the newspaper said.

The move comes after China’s stock market lost momentum after a rally fueled by the country’s move to optimize its COVID response, and as some investors do not expect a strong recovery of the economy.

The firms have to submit the results of the stress test and related data before April 14, the paper said. (SD-Agencies)