ICBC Grants First Hypothecated Loan to Securities Firm
The Industrial and Commercial Bank of China (ICBC) granted a stock-hypothecated loan of 13. 68 million yuan to Guangfa Securities Co. Ltd. on March 31, with an outstanding term of six months. This is the first stock-hypothecated loan granted by a Chinese commercial bank to a securities company, and is also the first such deal since China's central bank promulgated a procedure on the management of stock-hypothecated loans in February.
The two sides have both expressed the will to continue their cooperation in stock-hypothecated loans, and will also probe new methods for business cooperation in an effort to promote the prosperity of both the monetary market and the capital market.
The People's Bank of China officially approved the ICBC's qualification to engage in stock-hypothecated loans on March 30. The ICBC has established special departments to serve this new business, and formulated necessary procedures to ensure success.
The Industrial and Commercial Bank of China (ICBC) granted a stock-hypothecated loan of 13. 68 million yuan to Guangfa Securities Co. Ltd. on March 31, with an outstanding term of six months. This is the first stock-hypothecated loan granted by a Chinese commercial bank to a securities company, and is also the first such deal since China's central bank promulgated a procedure on the management of stock-hypothecated loans in February.
