China's central bank said on Thursday that it will continue to support liquidity need of China Securities Finance Corporation, the national margin trading service provider, to stabilize a tumbling stock market. The PBOC said it has made sufficient re-lending to the company and approved the latter to issue short-term financial bonds in the interbank market to replenish liquidity.

China Securities Finance Corporation is the only institution to provide margin financing loans to securities companies. It has offered 260 billion yuan of stock-secured credit for 21 brokerage firms to conduct self-run share purchasing on the market. The PBOC is trying to guide more capital into the market to rein in a continued plunge and restore investors' confidence.

Go to Forum >>0 Comment(s)