Shanghai Daily news

Shanghai shares yesterday continued its upward momentum to finish at its highest level in a month, after a media report said the central bank is likely to offer some domestic brokerages low-interest loans, sparking optimism in the market.
The shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, advanced 1.39 percent to 1,131.05, the highest close since May 10 when it ended at 1,135.56. The A-share Index rose 1.4 percent to 1,187.39, and the B-share Index added 0.42 percent to 70.1.
"The news is a strong incentive for the country's brokerages, as most of them are struggling in their bottom line," said Dai Ming, an analyst with Fortune Securities Brokerage Co Ltd.
The brokerage sector suffered a loss of more than 200 billion yuan last year, Dai noted.
"The move (to offer loans) is expected to increase the liquidity of securities firms," Dai added. "The regulatory support mirrors the government's determination to help brokerages survive the current poor situation, and it also helps to restore investors' confidence."
The interest rate of the long-term loans the central bank will provide will be very low, China Securities Journal said, citing an unnamed source. No indication of the rate or the period of the loans was revealed.
Citic securities Co jumped 10 percent to 6.01 yuan (72 US cents).