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![China's stock market has been in a downward spiral since hitting a peak in June, with the benchmark Shanghai Composite Index shedding more than 30 per cent [Xinhua]](http://thebricspost.com/wp-content/uploads/2015/07/133014314_13890834697741n.jpg)
China’s stock market has been in a downward spiral since hitting a peak in June, with the benchmark Shanghai Composite Index shedding more than 30 per cent [Xinhua]
China Securities Finance Corporation Limited (CSF) will purchase more shares of small- and medium-sized listed companies to ease stock market liquidity, said Deng Ge, a spokesperson for the China Securities Regulatory Commission (CSRC).
The CSF has provided 260 billion yuan ($41.89 billion) in credit lines to 21 brokerage firms to help them buy stocks via proprietary trading on Wednesday, Deng said.
China’s stock market has been in a downward spiral since hitting a peak in June, with the benchmark Shanghai Composite Index shedding more than 30 per cent.
The government has rolled out a streak of supportive measures, including asking 21 major securities brokers to spend 128 billion yuan on exchange traded funds (ETF) that track the performance of blue chip stocks on Monday.
The total net assets of the 21 securities firms now exceeds 800 billion yuan, while their combined net capital and high-quality liquid assets both stand above 600 billion yuan, he said.
The CSF is the only company in China that provides margin financing for securities firms. Its shareholders include the Shanghai and Shenzhen stock exchanges, several futures and commodity exchanges, as well as the China Securities Depository and Clearing Co., Ltd..
