Chinese brokerages have launched more asset management products (AMPs) to finance cash-starved private companies, a business group said.
A total of 28 securities companies had set up 31 asset management products, including three subsidiary ones, and collectively contributed 41.71 billion yuan (around 6.06 billion U.S. dollars) as of December 14, the Securities Association of China (SAC) said in an online statement Tuesday.
Several AMPs have started to make investments, with total funds at 1.95 billion yuan, the SAC said.
Nearly 70 million yuan of funds raised under products of GF Securities have been provided to controlling shareholders of Misho Ecology & Landscape Co., Ltd., a landscape design company based in Wuxi, east China's Jiangsu Province.
Brokers initiated the AMPs-based program to finance the private sector at the beginning of November as a plunging stock market posed threats to firms that pledged their shares as collateral to borrow money.
With more brokers joining the program, 42 securities companies have pledged to offer a collective 52.75 billion yuan as far.