China's securities regulator on Thursday urged brokerages to be flexible in clearing up accounts involved in illegal trading in response to worries that the clampdown may weigh on the market.
Instead of unilaterally terminating the contracts, brokerage companies should discuss with their clients and adopt other softer practices, including transferring the assets involved to legal accounts or granting them legal access to the market, according to a statement of the China Securities Regulatory Commission (CSRC).
The move is the latest attempt by the regulator to reassure investors, after it promised the crackdown will not impact the market on Monday.
The CSRC started to take hard action on capital inflow via illegal channels to reduce risks and deflate bubbles on July 12, which triggered concerns that interests of many investors will be hurt and the market may suffer.
As of Wednesday, the CSRC has cleared up nearly 65 percent of the accounts involved, mostly by softened measures, the statement said.
Chinese shares experienced a roller coaster ride on Thursday following Wednesday's sharp rise, with the benchmark Shanghai Composite Index down 2.10 percent to end at 3,086.06 points.
