CSF denies rumor about selling shares

BEIJING - China Securities Finance Corporation Limited (CSF), the national margin trading service provider, on Wednesday denied a rumor that it reduced holdings in a listed dairy producer, in a showcase of its effort to shore up market confidence.

The company, which provides margin trading services to securities brokerages and monitors the health of the business, told Xinhua that it has not sold shares of any listed companies by now.

A media report said the company reduced its holdings in Inner Mongolia Yili Industrial Group Co, a leading dairy producer in China, by 108 million shares between July 9 and 17, accounting for roughly 1.8 percent of Yili's total shares.

Statement of Yili showed that the CSF hold 6.05 percent of its shares on July 9, but its holding fell to 4.28 percent on July 17.

During the country's concerted efforts to curb sharp stock market decline in previous weeks, China's central bank said it supports the liquidity needs of the CSF to increase share purchases and offer brokerage firms liquidity aid.

In its recent stock purchase operations, the CSF once held more than 5 percent of the total shares of some listed companies, the company admitted.

Shareholders holding more than 5 percent of a company's shares are subject to stricter trading information disclosure obligations, according to current rules of stock exchanges.

The company said after finding out the fact, it soon transferred its holdings above the 5-percent line to fund management companies, which did not sell any stocks.

"The current holding percentages of CSF are in line with related laws and regulations, as well as the requirements of stock exchanges," the company said.

It added that it will strive to work toward the goals set by China's securities regulator - stabilizing the market, maintaining investor confidence and preventing systemic risks.