Shenzhen Has Billion-Dollar Bailout Plan For Local Companies

By Peng Yanfeng, Wang Jing and Leng Cheng

The country's two major stock index have neared four-year lows recently, raising the risk of repeated margin calls which will further deflate share prices. Photo: VCG

*A special Shenzhen government team will hand out billions of yuan to slow share dumping sparked by share-backed loans

*As of Monday, 112 of the over 280 Shenzhen-based listed companies had more than 20% of their shares pledged as collateral for loans

(Shanghai) — Shenzhen’s government is preparing to inject at least 15 billion of yuan into nearly 30 local listed companies to defuse the risk of share dumping as the country’s stock markets continue to fall, Caixin has learned.

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