May
23

Chinese State Fund Taps WMPs in Financing Shift, Merchants Says

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  • China Securities Finance raised 460 billion yuan from WMPs
  • May invest in high dividend-yield stocks: Merchants analysts

China Securities Finance Corp., the state entity that borrowed more than 1 trillion yuan ($153 billion) from banks at the government’s behest to stabilize stocks last year, is adjusting its liabilities by repaying loans with funds borrowed from lenders’ wealth management products, according to China Merchants Securities Co.

China Securities Finance has borrowed about 460 billion yuan from off-balance-sheet wealth management products, or WMPs, issued by banks as of the end of the first quarter, up from about 370 billion yuan in the fourth quarter last year, China Merchants Securities analysts Ma Kunpeng and He Yue wrote in a note on Tuesday…

Chinese State Fund Taps WMPs in Financing Shift, Merchants Says

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