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China agency seeking additional 2 trillion yuan to prop up markets - Bloomberg

Published 06/08/2015, 13:15
Updated 06/08/2015, 13:26
© Reuters. An investor looks at a computer screen in front of an electronic board showing stock information at a brokerage house in Fuyang

BEIJING (Reuters) - The Chinese government agency tasked with buying stocks to prop up China's wobbling markets is seeking an additional 2 trillion yuan (207.66 billion pounds) in funds, Bloomberg reported on Thursday.

The additional funding would increase the war chest available to China Securities Finance Corp. (CSF) to 5 trillion yuan -- a figure that could still change depending on market conditions, according to Bloomberg, citing unidentified sources.

The CSF has been thrust into the spotlight since shares plummeted in June as a conduit for China's central bank to inject funding directly into the market.

China initially made 3 trillion yuan of funding available for CSF in July to offer liquidity support to brokers and to buy stocks and mutual funds.

© Reuters. An investor looks at a computer screen in front of an electronic board showing stock information at a brokerage house in Fuyang

The agency is seeking to borrow money for three to 12 months and at rates of up to 4.4 percent, Bloomberg reported, citing sources with knowledge of the agency's plans.

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