More than 500 billion yuan (US$71.96 billion) in bailout funds have been proposed or established by local governments, brokerages and insurance firms to help private companies with liquidity issues or “share pledge” risks, according to a calculation by Securities Daily.
Local governments and the State-owned Assets Supervision and Administration Commission (SASAC) of the 17 provinces including Ningxia, Jiangxi and Jiangsu have set up or pledged to establish about 256 billion yuan.
The current scale of asset management plans pledged by brokerages has exceeded 70 billion yuan. Among them, 26 brokerages promised to invest a total of 44 billion yuan, while 16 brokerages have already established 16 asset management plans and one sub-plan, with a total investment of 31.59 billion yuan.
Following the issuance of special insurance products worth a total of 78 billion yuan by China Life Insurance, Taiping Life Insurance, PICC, New China Life Insurance and Sunshine Insurance Group, Taikang Life Insurance have also set up 8 billion yuan in special products to help private companies.
In addition, the Shanghai and Shenzhen Stock Exchanges currently issued four special debts for bail-outs, totalling 4.3 billion yuan.