China's PBOC Unveils 500 Billion Yuan ($70.61 Billion) SFISF to Bolster Stock Market

Oct 10, 2024, 01:28 AM

China's central bank, the People's Bank of China (PBOC), announced on Thursday, October 10, the establishment of a new Securities, Funds and Insurance Companies Swap Facility (SFISF) with an initial scale of 500 billion yuan (approximately $70.61 billion). The facility is designed to provide liquidity to eligible securities firms, fund companies, and insurance companies to support the healthy and stable development of the capital market. Eligible institutions can pledge assets including bonds, stock ETFs, CSI300 stocks, and corporate bonds to obtain high-grade liquid assets such as treasury bonds and central bank bills from the PBOC. This move is part of the PBOC's efforts to innovate structural monetary tools and bolster the stock market amid significant market declines, including the Shanghai index's largest drop since 2020 and the Hong Kong index's steepest fall since 2008.