Finance: Loans-for-stocks crackdown on way

(Shanghai Daily)
Updated: 2007-02-05 14:21

China's banking watchdog said it will crack down on organizations that approve loans specifically used to trade stocks, the Xinhua news agency said, citing unidentified officials from the China Banking Regulatory Commission.

The clampdown is scheduled to start after the Chinese New Year. Banks must take responsibility for approving loans that are used to trade stocks, the officials said. Many investors increased borrowings that were used for buying shares as China's stock market rallied last year.


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