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Three major brokerages have received a total of 1.45 billion yuan (about US$179 million), in revolving loans from state lenders. The Shanghai Securities Daily reports the deal is part of China's efforts to shore up the struggling sector.
China Merchants Securities received an initial loan of 350 million yuan, about one fourth of the total loan. Orient Securities received 600 million yuan, accounting for 40 percent. Huatai Securities received the remaining 500 million yuan.
All of the loans will be provided by state-owned commercial banks. The one-year loan carries an interest rate of 3.7 percent, the same rate set by the central bank.
China's central bank was reportedly ready to offer up to 10 billion yuan in loans to the nation's troubled stock brokerages.
(CCTV.com August 9, 2005)
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