Citic Securities urges China’s cbank to cut rates, reserve requirements: Securities Journal

By: | Published: July 8, 2015 9:08 AM

Citic Securities, one of China's largest brokerages, has urged policymakers to send a clear message of support for the slumping stock market by cutting interest rates and slashing banks' reserve requirements, the official China Securities Journal reported on Wednesday.

Citic Securities, one of China’s largest brokerages, has urged policymakers to send a clear message of support for the slumping stock market by cutting interest rates and slashing banks’ reserve requirements, the official China Securities Journal reported on Wednesday.

The brokerage also urged the Ministry of Finance and the State-owned Assets Supervision and Administration Committee to promulgate a stock purchase plan for employees of listed companies, the paper reported.

In addition, the brokerage recommended the China Investment Corporation, state investment firm Central Huijin and the State Administration of Foreign Exchange to purchase Hong Kong-listed Chinese shares, to boost the confidence of foreign investors in the market.

The brokerage also asked policymakers to work to maintain the stability of the equity indices and guarantee safe liquidity conditions for the nation’s brokerages.

In recent days, major Chinese brokerages have announced large investments in blue-chip Chinese stocks, in an apparently co-ordinated and government-directed move to boost confidence in the market following a roughly 30 percent fall in the major indices over the past three weeks.

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