BEIJING Nike Tri Fusion Run MSL Sale , July 4 (Xinhua) -- China's 21 major securities brokers convened on Saturday, vowing to "firmly" stabilize the country's stock market, which has been shaken by continued plunges.
The brokers will spend no less than 120 billion yuan (19.62 billion U.S. dollars), or 15 percent of their total net assets, on exchange traded funds (ETF) that track the performance of blue chip stocks, according to a joint statement.
These firms will not sell the stocks they held as of July 3 and will buy more, at their own digression, when the benchmark Shanghai Composite Index is below 4,500 points.
They will also actively repurchase stocks in their own company from the market and encourage major stock holders to increase their stakes.
China's top three brokers -- CITIC Securities, Haitong Securities and Guotai Junan Securities -- were among the 21 signatories of the statement.
The Securities Association of China said in a statement that it appreciated the brokers' decision and asked all brokerages to view the economic situation and capital market in a correct way and take similar actions to underpin the ailing market.
Zhang Shuyu, a finance researcher with the University of International Business and Economics, said the brokers' move will likely cushion the downward pressure on the market.
The brokers' meeting on Saturday is the latest attempt to break the market's three-week losing streak, which has cut the benchmark Shanghai Composite Index by more than 28 percent.
Last Saturday, China's central bank lowered both the interest rate and reserve requirement ratio for banks to inject liquidity into the market.
On Wednesday, the Shanghai and Shenzhen stock exchanges announced a roughly 30-percent cut in stock transaction fees.
On the same day, the China Securities Depository and Clearing Company announced a reduction in stock transfer fees by about 33 percent from Aug. 1.
On Thursday, the China Securities Regulatory Commission (CSRC) said it will investigate suspected manipulation of the stock market.
On Friday, the CSRC said it will cut the number of IPOs in July in order to reduce the supply of stocks.
However, the steady drumroll of supportive policies has failed to reverse the trend.
The Shanghai Composite Index dived 5.77 percent on Friday to finish at 3,686.92 points from a peak of 5,178.19 points on June 12, falling below the psychological threshold of 3,700 points.
As worries arise that the continued plunges in the stock market will threaten China's whole financial system, central bank governor Zhou Xiaochuan said earlier this week that "China will hold fast to the bottom line that no systemic or regional financial risks should occur."
sing ahead， and to overcome all difficulties， and showing the firm determination of all Chinese people to keep up our stride on the new Long March and continue striving for new victories.
Esteemed Deputies，
We owe all the achievements made over the past year to the sound leadership of the Party Central Committee with Comrade Xi Jinping at its core and the concerted efforts of the Party， the military， and the people of all our nation's ethnic groups. On behalf of the State Council， I wish to express our sincere gratitude to all our people， including public figures from all sectors of society， and to other parties and people's organizations. I express our sincere appreciation to our fellow countrymen and women in the Hong Kong and Macao special administrative regions and in Taiwan， and to Chinese nationals overseas. I also wish to express our heartfelt thanks to the governments of other countries， international organizations， and friends from all over the world who have shown understanding and support for China in its endeavor to modernize.
Yet we must not lose sight of the many problems and challenges China faces in pursuing economic and social development. The internal forces driving economic growth need to be strengthened. Overcapacity poses a serious challenge in some industries. Some enterprises face difficulties in their production and operations. Economic prospects for different regions are divergent. Fiscal imbalance is becoming great. And potential economic and financial risks cannot be overlooked.
Environmental pollution remains grave， and in particular， some areas are frequently hit by heavy smog. We need to further strengthen our steps to combat pollution. There are also many problems causing public concern in housing， education， healthcare， elderly care， food and drug safety， and income distribution. It is distressing that there were some major accidents in the coal mining， construction， and transportation sectors.
There is still room for improvement in government performance. Some reform policies and measures have not been fully implemented. Excess fees and charges being levied on businesses and difficulties facing individuals who want to access government services remain standout problems. We still see problems of laws and regulations being enforced in a non-standard， unfair， or uncivil way. A small number of government employees are lazy and neglectful of their duties or shirk responsibility. Corruption often occurs in some sectors.
We must confront these challenges head-on， be ready to bear the weight of responsibility， and do our all to deliver. We must fulfill our historic mission and live up to the great trust placed in us by the Chinese people.
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