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Financial magazine Caijing cited unnamed sources as saying that
17 commercial Chinese banks had coughed up the cash for China
Securities Finance Corp as of Monday, after China's central bank
said it wanted to extend funding to the firm.
China Merchants Bank Co <600036.SS> was the biggest financier,
lending 186 billion yuan to China Securities Finance, Caijing
said.
China Securities Finance is the only institution that provides
margin financing loan services to Chinese securities firms, and
is seen as an important conduit for the government to counter
stock market volatility.
Spooked partly by speculation that China's central bank was
about to end its monetary policy easing, China's stock market
plunged in the past month by nearly a third at the peak of its
sell-off, wiping out around $4 trillion.
The collapse in stock prices sparked China's biggest rescue
effort of its equity market, with the government launching a
series of moves that included halting initial public offers, and
banning firms and their executives from selling shares.
Bloomberg reported separately on Friday that the Chinese margin
lender had 2.5 trillion yuan to 3 trillion yuan worth of funding
available as of this week to shore up the stock market if
needed, citing people familiar with the matter.
(Reporting by Koh Gui Qing; Editing by Ian Geoghegan)
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