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In China, response to pledged share meltdown stirs concern


SHANGHAI: Scores of Chinese brokers and banks are struggling under the weight of hundreds of billions of dollars worth of loans to companies using their own plummeting shares as collateral.

Southwest Securities, a Chinese securities broker based in Chongqing, said last month in its quarterly earnings report it had to set aside the equivalent of 80 percent of its profits through September to provide for likely losses because of such loans.

Corporate News , Markets

   

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