China's securities watchdog on Wednesday allowed stock brokerages to issue bonds to widen their funding channels after a continued losing streak on the country's stock market.

Brokerage were allowed to issue or transfer short-term corporate bonds via stock exchanges and private equity trading systems between institutions, according to a statement of the China Securities Regulatory Commission (CSRC).

In addition, the CSRC said brokerage firms can start the securitization of the right to derive profit from their margin trading business.