China's one hundred yuan. Photo: iStock
China's digital currency is taking shape. Photo: iStock

At least 11 securities brokerages have reached an agreement to invest 21 billion yuan (US$3.02 billion) to set up a parent asset management plan to ease the liquidity pressure of prospective listed companies amid the recent A-share slump, The Paper reported, citing an announcement by the Securities Association of China.

The plan will serve as a guiding fund to support various securities companies in creating several sub asset management plans, so as to attract funds from banks, insurance firms, state-owned enterprises and government platforms and form a asset management plan with a total scale of 100 billion yuan.

This asset management plan is specially designed to help prospective listed companies survive the equity pledge crisis, better serve the real economy and support the high-quality development of the private economy.

As of October 19, among the 3,554 A-shares, 3,353 listed companies have pledged their stocks, leaving only 21 firms free from equity pledge risks, according to Wind.