Managers fail to embrace sec-financing in China

Asset managers have failed to embrace securities borrowing in China despite the establishment of a central counterparty, with complexity in posting assets as collateral cited as not conducive to market development. A pilot programme was launched at the end of February, with China Securities Finance Corporation (CSFC) as the central counterparty and 11 brokerages approved to borrow securities on behalf of institutional clients. But the scheme has met a lukewarm response so far, w…