An investor checks on his mobile phone in front of an electronic board showing stock information at a brokerage house in Hangzhou, Zhejiang province, China, July 29, 2015.CHINA STRINGER NETWORK/Reuters
China Securities Finance Corp., the government agency mandated to buy stocks to stem a market rout, is seeking access to an additional 2 trillion yuan ($322-billion U.S.), said people with knowledge of the matter.
The extra funding would add to the 3 trillion yuan already made available by the government, according to the people, who asked not to be identified because the target hasn't been made public. The 5 trillion yuan total may change depending on market conditions, they said.
China is stepping up efforts to support the stock market after the benchmark Shanghai Composite Index's 29 per cent plunge from the June peak erased $3.4-trillion in market value. The CSF has been buying stocks with money borrowed from the central bank and state-owned commercial lenders.
The agency is seeking to borrow money for three to 12 months and at rates of up to 4.4 per cent, according to other people with knowledge of the lending plans.
The CSF's general office didn't immediately reply to a fax seeking comment.