China's Central Bank Launches 500 Billion Yuan ($71 Billion) Swap Facility on Thursday

Oct 10, 2024, 12:54 AM

China's central bank, the People's Bank of China (PBOC), announced on Thursday the creation of the Securities, Funds and Insurance companies Swap Facility (SFISF) with an initial scale of 500 billion yuan (approximately $71 billion). This initiative aims to provide liquidity to equity-holding financial institutions and support the healthy and stable development of the capital market. The facility allows eligible securities firms, funds, and insurers to obtain high-grade liquid assets, such as treasury bonds and central bank bills, from the PBOC by pledging bonds and stocks. This move is part of the PBOC's efforts to innovate structural monetary policy and bolster the Chinese stock market.