Haitong Securities commits additional RMB 15bn ($2.42bn) towards attempt to stabilise stock market
Haitong Securities has agreed to invest up to RMB 15bn ($2.42bn) in buying stocks (blue-chip ETFs) in mainland China's equity markets, to assist the regulators and central bank in their efforts to stabilise the market, which had fallen nearly 30% in three weeks; Haitong's commitment is separate to the agreement it had earlier entered into, in which several Chinese securities firms committed RMB 120bn ($19.3mn) towards buying stocks to stabilise the market. However, investors have so far not seemed to have reacted positively to Haitong's moves; its stock was down 9.24% today, after having fallen 15.24% on Monday.
Twenty-one mainland brokers, including Haitong Securities, have agreed to invest 15 per cent of their net assets in a pool totalling 120 billion yuan to buy Chinese index trackers to stem the slide in stock prices. Photo: Reuters