Chinese banks stump up $209bn to save stock market

Chinese equities have rallied strongly after it was revealed state banks have lent some 1.3trn yuan ($209bn) to the country's margin finance agency in the latest step to prevent a market freefall.

China Securities Finance Corporation, the country's margin finance agency, was created in 2011 to support securities brokerages in their lending to stock investors. Overnight, Chinese finance publication Caijing reported that 17 banks had stepped in to provide financing to the CSF, which in turn extended credit lines to brokerages in a bid to stop the sell-off. The agency has also issued bonds in the country's interbank market where commercial banks are the largest participants, bringing its total war chest to 2trn yuan ($322bn). The news has helped Chinese stocks recover more of t...