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China mulls letting stock insurance fund apply for c.bank loans

[BEIJING] China is considering allowing the country's stock insurance fund to apply to the central bank for funding in case of emergency, the stock regulator said on Friday.

The consideration is included in a set of draft amendments to the regulations governing the management of the Securities Investor Protection Fund, spokesman Deng Ge of the China Securities Regulatory Commission told a press conference Friday.

The fund was established in 2005 to rescue brokerages and other institutions on the brink of bankruptcy, which could threaten the interest of individual investors clients.

In June, when China's stock market plunged after a bubbling 150 per cent jump in less than a year, Beijing allowed securities institutions to use central bank borrowings to help support share prices for the first time in the market's 25-year history.

REUTERS

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