Rumor Mill: HOMS Will Only Allow Sell Orders on July 28; CSRC Trapped in A-Shares; ¥1 Trillion in Bailout Funds Remain

Reuters: China state-owned margin lender returns market-steadying funds early

Reuters: Main shareholders of 8 Chinese firms including China Railway Erju under probe

ZH: There Is No Exit: Why China's Plunge Protection Is Here To Stay

As for the HOMS rumor, first a little background:
WSJ: China’s Hundsun Freezes Stock Platform Accounts Amid Scrutiny
Hundsun Technologies Inc., a financial software company backed by Chinese billionaire Jack Ma, announced it isn’t accepting new accounts on a trading platform that has drawn scrutiny from regulators looking into China’s recent equity market turmoil.

Hundsun will also stop additional funds from going into existing accounts on the cloud-computing order-management system called HOMS, which is used as a stock trading platform, the company said in a filing Thursday with the Shanghai Stock Exchange.

The effective freeze on new activity on HOMS comes after officials from the China Securities Regulatory Commission, the industry watchdog, went Monday to the Hangzhou-based company’s offices to “verify related leads” and ensure that the company was implementing the agency’s directives.

Official data show HOMS had a market share of nearly 90% in a gray market that provides credit to small businesses and retail investors to purchase shares on China’s markets using borrowed funds. The system was widely used by peer-to-peer, or P2P, lenders, an industry of online platforms directly linking people who need loans to potential lenders.
On Monday, a rumor spread saying HOMS would only take sell orders on July 28.

Chinese coverage here.
iFeng: 恒生电子辟谣:HOMS系统未被关闭端口

Finally, all is well. China's PPT has another 1 trillion yuan to spend.

iFeng: 沪指暴跌国家队会否再出手 尚有万亿资金可用
Previously, the stock market crash of bailout drama, the company repeatedly shot gold card, replace Huijin became the capital of a new brother.

In the opinion of some analysts, plunged into play when the margin has become the largest market makers, after a successful bargain-hunting, with the rebound in the market a lot of money income, a rough estimate at least floating profit of 30% to 50% , the future of its holdings Or quit when every action affects the market trends.

States Securities researcher Xiao Shijun told the "China Times" reporter, said the margin the company is a high-profile appearance at the time of the market crash, the main task is to stabilize the market, to solve the liquidity crisis, the market is more vulnerable, securities holdings and gold company Exit every move will increase the volatility of the market, therefore, the short term margin company greater impact on the market.

Xiao Shijun pointed out that a comprehensive international point of view, short-term bailout funds will not soon quit, a longer period of time. Of course, it's exit can be flexible, such as rallies reduction, or is transferred to the pension margin use to keep doing, but will choose exit point in the market steadily upward, the market confidence, outside the capital increment Obviously, when trading activity carried out. "Of course, at this time, the impact of margin is very small companies out of the investors still have to pay close attention to determine the core elements of the market, the fundamentals of the market."

Securities released a report that, according to published reports, CSF is eligible for margin commercial bank credit scale is about 2 trillion yuan , as of July 13, more than 17 mainland commercial banks lent a total company margin of nearly 1.3 trillion yuan. Meanwhile, the Bank actively assist the company in accordance with market needs through margin lending, issuing financial bonds, mortgage financing, loan refinancing and other means to obtain sufficient liquidity.

According to public information, as of July 17, the size of margin stability maintenance companies use to sell more than 1 trillion yuan of funds. Maintenance of stability using funds from three aspects, first certified gold company stock pledged to broker self in the form of 260 billion yuan, followed by the five largest fund companies to buy 200 billion active fund shares, the third is certified gold company through 7 month opened a securities account to the securities market directly to buy assets. Meanwhile, there are 21 brokerage firms invested more than 120 billion yuan to buy blue chips ETF.

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