How to Keep Up Growth of New Accounts? Let People Open 20 Accounts!

IN the previous decade there was a problem with multiple accounts. The government cracked down and limited investors to one account. Under new rules, they can now open 20 subaccounts.

Reuters: China allows mainland investors to open multiple A-share accounts

"We will cancel the 'one person, one account' restriction for normal investors, and permit investors - according to their need - to open multiple A-share accounts on the Shanghai and Shenzhen bourses," the CSDC said.

The clearing house added it would strictly control the process to ensure that only investors who had real need of multiple accounts would be allowed to open them.

Xinhua goes in-depth and says a brokerage commission war is coming:

"The most immediate impact is the commission of war." Finance and Securities Institute, Wuhan University of Science and Technology Dong Teng said.

　　Dong Teng new view, and now the brokerage commission, which is the brokerage fee to investors, the ratio is generally in the eight ten thousandths. But the bull market which, in the case of the stock market has a high turnover rate, the commission also decreased space. Investors choose which broker to open an account, ultimately depends on the comparison of the commission. "Bull market, brokerage commission will strive to keep down the old shareholders, investors will compare old and new accounts to commission a lower priority."

　　The new regulation has just been released, some of the staff of the brokerage business department has felt the pressure. "Competition will certainly intensify fight charges are inevitable, and have more market-oriented means for marketing, the transition from the past to develop customers for customer retention." A client manager of a securities company Beijing business department said.

It also raises some regulatory issues that were a problem before, which is why the ban on multiple accounts exists:

However, no doubt that one person households will bring some new cases, follow-up adjustment of regulatory policy. Some market participants pointed out, for example, according to the current information disclosure rules, the individual account holder of a listed company's shares more than 5%, it is obliged to disclose, but if the same investor accounts scattered in different brokerages, who to blame?

Xinhua: Ａ股“一人一户”全面解禁 影响几何？