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Written by: Staff

BEIJING, Apr 19 (Reuters) Three Chinese postal agencies have injected 507 million yuan ($63 million) of capital into Huahong Securities, an official paper reported on Wednesday, the latest move aimed at shoring up the country's ailing brokerages.

The brokerage, based in the northwestern city Xian, secured the funds from the State Post Bureau, the Beijing Post Bureau and China National Philatelic Corp., according to the China Securities Journal.

The three units paid 224 million yuan, 168 million yuan and 115 million yuan, respectively, the paper said.

Following the infusion, the registered capital of the brokerage had swollen to 560 million yuan from 53 million yuan, it said.

Huahong Securities planned to set up new offices in major cities, including Beijing, Shanghai and Shenzhen, and to introduce broker services to the network of the three postal agencies, it said.

China has been trying to overhaul its brokerages in recent years, closing poor performers and nursing comparatively healthy ones amid fears that weakness in the securities sector could jeopardise the health of the overall financial system.

China's deposit-taking State Post Bureau has also become a target of long-running financial reforms since the cabinet approved its transformation into a commercial lender last year.

State media have reported that the new bank, tipped to be the country's fifth-largest, will be established soon.

($1=8.021 yuan) REUTERS CS HS0905

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