“China 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.  In China, a borrower pledging blue-chip shares can usually get a loan of as much as 50 percent of their value.”

http://www.bloomberg.com/news/articles/2015-07-09/china-lets-banks-roll-over-company-loans-backed-by-share-pledges

Did you like this?
Tip Freedomwat.ch Staff with Bitcoin

Donate via Installed Wallet Copy