Citic Securities and Haitong Securities lead group of securities firms in creating fund in effort to stabilise China's plunging stock market
Citic Securities and Haitong Securities have led a group of China's biggest securities firms in committing to invest RMB 120bn ($19.3bn) in a fund aimed at stabilising the stock market, which has fallen nearly 30% in three weeks; the firms also vowed not to sell off their proprietary investments in the market. Efforts to stabilise the market enacted by the People's Bank of China had not seemed to have halted the decline by late last week, though in Monday's trading Citic Securities rose as much as 10%, while Haitong Securities rose 6.9%; meanwhile, the Shanghai Composite rose 4.2%.
Twenty-five leading brokerages and mutual fund houses agree to a raft of measures in a bid to bring stability to the mainland markets