SHANGHAI—China cut the capital-reserve requirement for
securities firms and expanded the range of financial products
they may invest in, as the government works to boost the sector
amid a sluggish domestic stock market.  Brokerages that engage
in asset management must now set aside as reserves 1% to 2% of
the amount under management, down from the previous 2% to 4%,
China Securities Regulatory Commission said in a statement
released Friday. This follows a cut in April that reduced the
reserve requirement from between 5% and 8%.  For the margin-
trading business, the reserve level has been cut to 5% from 10%.
Securities companies will also be allowed to invest in more
types of assets, including securities traded in the country's
over-the-counter market and interbank bond market, the regulator
said. Previously, their investments were limited to government
bonds, central bank bills and stocks traded on China's two stock
exchanges,  With a weak stock market hurting security firms'
mainstay broking business, China