Chinese brokerages which pledged to set up a fund worth at least 120 billion yuan ($19.3 billion) to stabilize the stock market had already shifted money into accounts to be used in the scheme on Monday morning, the Shanghai Securities Journal reported on Tuesday.
The 21 brokerages transferred a total of over 128 billion yuan into the accounts of state-owned China Securities Finance Corp, which provides margin financing services, the newspaper said, citing Wang Min, vice head of China’s securities association.
China has announced a slew of polices over the past week to prop up stock prices and stoke buying interest in a market that slumped nearly 30 percent in just three weeks.
The Asset Management Association of China said in a statement on Tuesday that 57 mutual fund companies had started investing in equity funds, or plan to do so soon, using a combined 2.16 billion yuan of their own capital, to stabilize the stock market.
The announcements follow pledges by China’s brokerages and mutual fund houses over the weekend to use their own money to buy equity funds or ETFs, with the planned investment mainly targeting blue chips.
On Monday, the China 50 ETF, the country’s biggest ETF that buys into the biggest 50 listed companies in Shanghai, jumped over 6 percent in record turnover, helping anchor market sentiment.
And the six major ETFs listed in Shanghai, including the China 50 ETF, saw combined net money inflows of 40 billion yuan, smashing previous records, the Securities Times reported.
Meanwhile, Chinese Premier Li Keqiang said on Monday that China had the confidence and ability to deal with the risks and challenges faced by its economy, according to a statement on the central government’s website.
($1 = 6.2089 Chinese yuan renminbi)