China's securities regulator has relaxed rules on using borrowed money to speculate on stock markets, the latest in a flurry of government measures aimed at stemming two weeks of panic selling that is posing a growing risk to the world's second-largest economy.
Just a few weeks ago, authorities were cracking down on riskier margin financing, which had helped Chinese markets more than double in a year.
But a more than 20 percent plunge in share prices in two weeks have seen an abrupt shift as the government works to avert a crash in the world's most volatile stock market.
China Securities Regulatory Commission (CSRC) said late on Wednesday that it would cancel a rule requiring investors make additional guarantees if their margin ratio reaches 130 percent or else face forced liquidation of their shares.
The regulator said brokerages will also be allowed to roll over margin trading contracts with clients.