BEIJING, Aug. 27 -- The minimum margin ratio of financing for purchasing securities will be lowered from 100 percent to 80 percent in China, according to a statement by the Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing Stock Exchange on Sunday.

Approved by the China Securities Regulatory Commission (CSRC), the move will take effect after shares close on Sept. 8, 2023, the statement said.

The bourses said that the adjustment is aimed at implementing the policies recently issued by the CSRC to invigorate the capital market and boost investor confidence.

The CSRC noted that moderately lowering the minimum margin ratio will help put available funds to good use.