China Lets Banks Roll Over Loans Backed by Pledges of Shares
ByChina will let banks roll over loans backed by shares and adjust their collateral requirements as the government tries to limit pressure for investors to sell stock and contain risks to the financial system from a market rout.
The China Banking Regulatory Commission also wants lenders to support firms’ share buybacks by offering collateralized loans, the agency said in a statement on Thursday.
One of the side-effects of the share market’s collapse from a June 12 peak was to diminish the value of shares pledged as collateral for loans from banks and brokerages. As of Wednesday, that pool of stock was valued at 1.9 trillion yuan ($306 billion) and comprised shares in 1,170 companies, according to Wind Information data…
China Lets Banks Roll Over Loans Backed by Pledges of Shares
