China's PBOC Launches 500 Billion Yuan SFISF to Aid Securities Firms; Facility May Increase

Oct 10, 2024, 01:56 AM

China's central bank, the People's Bank of China (PBOC), announced on Thursday the establishment of the Securities, Funds, and Insurance Companies Swap Facility (SFISF) with an initial scale of 500 billion yuan (approximately $71 billion) to provide liquidity support to eligible securities firms, fund managers, and insurance companies. The SFISF aims to promote the healthy and stable development of China's capital market. Institutions can obtain high-grade liquid assets, such as treasury bonds and central bank bills, by pledging assets including bonds, stock exchange-traded funds (ETFs), and stocks from the CSI300 index. The PBOC indicated that the size of the facility could be increased further if necessary.