Chinese securities firms are expected to get a clear indication from the market regulator soon on when it would allow margin trading after completing the test runs of the trading networks.

The 11 securities firms, selected by the China Securities Regulatory Commission a year ago for the margin trading experiment, are fully equipped to start the new business under which investors borrow money to buy securities or borrow securities to sell, the Shanghai Securities News reported.

Although the regulator has not given any official confirmation, analysts said market conditions for the new business have matured and it is likely to be launched next year.