China will boost lending to brokerages for their margin trading business after the nation’s stock market slumped and leverage more than halved from last year’s peak.
China Securities Finance Corp., a state-backed agency that provides margin financing and liquidity, said it will resume loans of certain durations to securities firms, according to a statement posted on its website Friday. The agency will restart lending for 182-day, 91-day, 28-day, 14-day and 7-day margin trading, as well as cut borrowing costs, according to the statement.
The full Bloomberg article is available at http://www.bloomberg.com/news/articles/2016-03-18/china-loosens-lending-curbs-for-brokerages-margin-trading
