SHANGHAI, July 27 (Reuters) - The China Securities Financial Corporation (CSFC) returned some of the funds it borrowed from commercial banks intended to stabilise the stock market ahead of schedule, three people in the banking industry with direct knowledge told Reuters.
The news comes after Chinese markets posted their worst performance since 2007 on Monday, as investors grow concerned that Beijing’s commitment to supporting the stock market may be flagging.
The CSFC used loans from commercial banks to buy shares in embattled Chinese stocks to head off a panic on Chinese exchanges that saw major indexes lose up to 30 percent in a matter of weeks.
One of the people said loans taken out from one major state-owned bank had already been repaid, a portion of which was long-term capital.
The CSFC did not respond to calls requesting comment. (Reporting by Hong Kong newsroom; Writing by Pete Sweeney; Editing by Ian Geoghegan)
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