Reports from the Shanghai and Shenzhen stock exchanges

PBOC to Launch Second Round of 50 Billion Yuan Securities, Funds, and Insurance Swap Facility to Boost Market Liquidity

Dec 31, 2024, 04:55 AM

The People's Bank of China (PBOC) has announced plans to conduct a second round of the Securities, Funds, and Insurance Companies Swap Facility (SFISF) to support the development of the capital market. This initiative, which is expected to exceed 50 billion yuan, aims to enhance liquidity within the financial sector. The China Securities Regulatory Commission (CSRC) has also expanded participation in the equity swap facility by adding 20 new firms. The swap facility will have a one-year term, with the possibility of extension, and will be open to qualified securities, fund, and insurance companies. The announcement comes as turnover on the Shanghai and Shenzhen stock exchanges exceeded 1 trillion yuan for the 65th consecutive day, indicating strong market activity.