SHANGHAI, July 10 (Reuters) - The Shenzhen Stock Exchange said on Friday that domestic brokerages have issued 102.9 billion yuan ($16.57 billion) in short-term bonds on its exchange in order to support stock market investments.
The Shanghai Stock Exchange said earlier that domestic brokerages have issued 91.4 billion yuan ($14.7 billion) in short-term bonds on that exchange, at average yields of 5.35 pct.
The issues are in compliance with instructions from the China Securities Regulatory Commission (CSRC) to expand investment into the stock market to help stabilise indexes, the exchange said in an online statement. China’s stock markets slid sharply in mid-June.
The decision to allow brokerages to issue bonds, in addition to using their own capital, helps them expand financing channels and maintain liquidity. ($1 = 6.2092 Chinese yuan renminbi) (Reporting by Pete Sweeney; Editing by Adam Jourdan)