China brokers to invest US$19b to curb market plunge

Source: Xinhua | July 5, 2015, Sunday |

Online Edition

CHINA'S 21 major securities brokers convened on Saturday, vowing to "firmly" stabilize the country's stock market, which has been shaken by continued plunges.

The brokers will spend no less than 120 billion yuan (US$19.33 billion), or 15 percent of their total net assets, on exchange traded funds (ETF) that track the performance of blue chip stocks, according to a joint statement.

These firms will not sell the stocks they held as of July 3 and will buy more, at their own digression, when the benchmark Shanghai Composite Index is below 4,500 points.

They will also actively repurchase stocks in their own company from the market and encourage major stock holders to increase their stakes.

China's top three brokers -- CITIC Securities, Haitong Securities and Guotai Junan Securities -- were among the 21 signatories of the statement.

The Securities Association of China said in a statement that it appreciated the brokers' decision and asked all brokerages to view the economic situation and capital market in a correct way and take similar actions to underpin the ailing market.

Zhang Shuyu, a finance researcher with the University of International Business and Economics, said the brokers' move will likely cushion the downward pressure on the market.

Business

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

China brokers to invest US$19b to curb market plunge

Email this to your friend