China stocks rise after state margin lender cuts brokers' borrowing costs

lunes 21 de marzo de 2016 00:18 GYT
 

* CSI300 +2.2 pct, SSEC +1.8 pct, HSI +0.3 pct

* Financial shares outperform

SHANGHAI, March 21 (Reuters) - China stocks rose on Monday after the state margin lender said if would resume some short term lending businesses and cut borrowing costs for brokerages.

Financial shares led indices higher with the CSI300 financial sub-index gaining 3.2 percent.

The China Securities Finance Corp Ltd (CSF), which lends brokerages money to fund margin financing, said late on Friday that lending businesses under five terms - ranging from seven to 182 days - would all be open to brokerages starting Monday.

The firm's lending businesses under four terms, including seven, 14, 28 and 91 days, had been suspended for the past 18 months. The firm will also cut borrowing costs, it said.

CSF gave no official reason for suspending shorter-term lending business in August 2014, but analysts believed it was due to a capital shortfall.

"It's a clear signal that regulators are ready to provide the market with easier, and cheaper funding," said Wang Yu, analyst at Pacific Securities.

"Although it won't likely translate immediately into any meaningful businesses for brokerages, it definitely boosts investor confidence, in the context of a series of new messages from the new securities chief."   Continuación...