Brokerages will from now on be able to use convertible bonds of listed companies as loan collateral for working capital, according to new regulations jointly announced by the People's Bank of China, the China Banking Regulatory Commission and the China Securities Regulatory Commission. Prior to this, only shares could be used to secure loans. The new rules also extend the maximum borrowing period from six months to a year. Brokers have been suffering from losses for years on the back of moribund markets.
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