PBOC Conducts First 50 Billion Yuan SFISF Operation

Oct 22, 2024, 07:48 AM

China's Central Bank, the People's Bank of China (PBOC), has conducted its first Swap Facility for Securities, Funds, and Insurance Companies (SFISF) operation. The initial transaction, valued at 50 billion yuan (approximately USD 7 billion), involved swapping out government bonds, according to state media. This move, reported by Reuters, is aimed at bolstering stock market liquidity. China International Capital Corporation (CICC) completed the first stock purchase under this facility on Tuesday, while Guotai Junan Securities completed a pledged operation and plans to conduct stock purchases using borrowed funds within the week. Analysts suggest that Chinese brokerages are likely to use the funds for market-making and to buy large-cap, high-dividend stocks.