(Yicai Global) June 24 -- China's central bank last week increased the upper limit for outstanding commercial bill issuance at 10 major brokerages to make sure they have ample liquidity.

The new cap for the leading brokerages, which include Citic Securities, Guotai Junan Securities and Haitong Securities, will total at least CNY280 billion (USD40.7 billion), the National Business Daily reported, citing their up-to-date limits.

Guotai Junan's celling is now set at CNY50.8 billion, the highest among the firms, followed by Citic Securities at CNY46.9 billion, Haitong Securities at CNY39.7 billion, Huatai Securities at CNY30 billion, and GF Securities at CNY17.6 billion.

Commercial bills are securities sold in the interbank market that the issuing company should repay with interest in a year. Boosting the amount brokerages can offer to the market is a way to provide short-term support to businesses. Demand for liquidity has increased dramatically in recent years due to the massive expansion of securities firms. Short-term bills have gained favor as a flexible and quick financing tool.

The easing move by the People's Bank of China will positively impact market liquidity in an indirect manner, a researcher at a mid-sized brokerage said, adding that a recent slew of policies to advance capital market reforms shows the determination of authorities to stimulate the capital market.