Beijing launches US$15b asset swap to support China’s markets after sell-off
China’s central bank announced on Monday it would start a fresh round of a swap facility to support the struggling A-share market, after its worst sell-off in almost a decade dealt a heavy blow to investor confidence and threatened to bring new risks to the country’s financial system. The People’s Bank of China (PBOC) would have a one-year swap that allows institutional investors to exchange…
China's central bank has launched a US$15 billion asset swap program to bolster the nation's struggling A-share market, following its most significant sell-off in nearly a decade. The People's Bank of China (PBOC) has introduced a one-year swap facility that enables institutional investors to trade illiquid assets for liquid ones, thereby facilitating stock purchases.
To date, 31 institutions have applied for the program, with a combined asset size of 100 billion yuan, equivalent to US$15.04 billion. The CSI 300 Index, which gauges the performance of major Chinese firms listed on the Shanghai and Shenzhen stock exchanges, experienced a 0.79% increase on the back of expectations of state intervention.
The swap program is part of a comprehensive package unveiled by the central bank in 2024 to bolster stocks. To date, the PBOC has executed two rounds of funding under this initiative. Additional measures are anticipated.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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