The highly anticipated science and technology innovation board of the Shanghai Stock Exchange is likely to adopt the T+0 system, which means investors can sell the stocks they buy on the same trading day, experts said.
The market expects the exchange to launch the new board in the second quarter at the earliest, which will be a pilot project in China's capital market reforms.
The T+0 system, they said, could improve efficiency of the new stock trading platform insofar as reflecting the supply-demand relationship in prices and boosting liquidity are concerned.
Such an approach could well prompt similar reforms in the broader A-share market, they said.
Higher volatility can be expected if the T+0 system is introduced straightaway at the launch, he said. "That is because when the board has just come into force, only a small number of companies will be listed, making the market prone to volatility."
Original Article From: http://english.uibe.edu.cn/news/newsreleases/index.htm
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