China stock exchanges to tighten rules on financing using stock as collateral

SHANGHAI, Sept 8 (Reuters) - China's regulator on Friday published draft rules that would restrict financing businesses using stocks as collateral.

The draft rules on the so-called stock pledged repurchase business, published by the Shanghai and Shenzhen stock exchanges, will curb leverage and are aimed at reducing risks in the event of a sharp decline in stock prices. (Reporting by Samuel Shen and David Stanway; Editing by Jacqueline Wong)