Chinese banks apply for 30B loan quota for stocks
Chinese banks applied for thirty billion dollars in loan quotas to fund share purchases as Beijing steps up support for the stock market. The central bank also cut relending rates to one percent to lower borrowing costs for listed companies.
Insights:
Chinese commercial lenders applied for $30 billion in loan quotas this week to fund share purchases by listed firms. The move follows a 0.25 percentage point rate cut on the central bank's relending scheme. The initiative aims to stabilize equity markets in China, which have lagged major global indexes.
