China’s securities watchdog has told several large non-bank financial institutions to lend more to smaller non-bank institutions in the interbank market to ease a liquidity crunch, sources with direct knowledge of the matter told.

Li Chao, vice chairman of China Securities Regulatory Commission (CSRC), delivered the message during a meeting on Sunday. According to the minutes, Li urged large non-bank institutions not to cut off smaller non-banks as counterparties in the interbank market.

Li also told them to increase their lending quota for short-term bonds and offer more financing tools to support small securities firms and funds, the minutes showed.