Chinese Brokerages Rally on Revived Support for Margin Trading
- State finance agency to resume offering shorter-dated loans
- Everbright Securities among firms that jumped by daily limit
People sit at trading terminals at a securities exchange house in Shanghai, China, on Monday, Feb. 15, 2015. China's stocks fell as trading resumed after a week-long holiday which saw global equities enter a bear market on concern over the strength of the world economy.
Photographer: Qilai Shen/BloombergChinese brokerages rallied after policy makers loosened controls on margin lending, which helped fuel last year’s stock-market boom.
Everbright Securities Co. was among brokerages that jumped by the 10 percent daily limit Monday after China Securities Finance Corp. said it will restart offering loans to securities firms for periods ranging from 7 days to 182 days. The state-backed agency, which provides funding to brokerages for margin trading, will cut interest rates on the debt to as low as 3 percent, it said in a Friday statement.