Beijing – China’s Central Bank on Thursday in Beijing promised to continue to support liquidity need of China Securities Finance Corporation Limited (CSF) to stabilise a tumbling stock market.
China Securities Finance Corporation Limited was the Country’s national margin trading service provider.
The People’s Bank of China (PBOC) said it has made sufficient re-lending to the CSF and approved the latter to issue short-term financial bonds in the interbank market to replenish liquidity.
The CSF was the only institution to provide margin financing loans to securities companies.
It said it has offered 42 billion U.S. dollars of stock-secured credit for 21 brokerage firms to conduct self-run share purchasing on the market.
The PBOC said it was trying to guide more capital into the market to rein in a continued plunge and restore investors’ confidence.
It said this was because the Chinese shares have been in a downward spiral since hitting a peak in June. (Xinhua/NAN)