Today CNBC reports that China’s Securities Association announced a CNY 100 billion (US$14.5 billion) asset management plan to alleviate ‘share pledges’. They worry that mainland stock index falls of up to 35 per cent this year will force the selling of shares currently being used as collateral for cash loans, which some put as high as 10 per cent of listed A shares. The move follows a series of other adjustments made by the authorities to stem the potential damage trade sanctions might bring.
To continue reading, register today
to enjoy limited access to the following:
- Daily trading news
- Funds coverage
- Features on big investment themes
- Comprehensive companies coverage
- Economic analysis