SHANGHAI, Oct 29 (Reuters) - The asset management unit of China Life Insurance Co aims to raise 20 billion yuan ($2.87 billion) in a product dedicated to easing liquidity pressure at quality listed firms, the Securities Times reported on Monday, citing unidentified sources.
The product will invest in equities or bonds issued by listed firms with promising growth prospects, but are suffering from temporary liquidity stress due to market volatility or value erosion in pledged shares, the newspaper said.
Over the past week, China has unveiled a series of measures to ease liquidity pressure at small and medium-sized enterprises struggling in a slowing economy clouded by the broadening Sino-U.S. trade war.
Underscoring the liquidity stress, about $620 billion of Chinese shares have been pledged for loans, putting companies under pressure as stock markets tumble and the prospect of forced liquidation rises. ($1 = 6.9585 Chinese yuan renminbi) (Reporting by Samuel Shen and John Ruwitch; Editing by Simon Cameron-Moore)