Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, May 7 (Xinhua) — China’s central bank said Wednesday it will combine the quotas of two monetary policy tools to further support the capital market.
The swap facility for securities, fund and insurance companies (SFISF), with an initial capacity of 500 billion yuan (about $69.4 billion), and the 300 billion yuan re-lending facility that supports share buybacks and share expansion, will be implemented within a total quota of 800 billion yuan, according to the People’s Bank of China (PBOC, the central bank).
The decision, which took effect on Wednesday, is expected to make the two mechanisms more convenient and flexible to better meet the needs of different types of institutions and strengthen the inherent stability of the capital market, the PBOC said in a statement.
Both instruments, launched in October last year to strengthen the capital market, operated in accordance with market principles and played a positive role in ensuring the stable operation of the capital market, the Central Bank said in a statement.
The SFISF allows eligible securities, fund and insurance companies to use their assets, including bonds, ETFs and CSI 300 index stocks, as collateral in exchange for highly liquid assets such as government bonds and central bank bills.
The PBOC has carried out two SFISF operations totaling 105 billion yuan, and more than 500 listed companies and major shareholders have reported using the refinancing mechanism to buy back shares or increase their holdings, according to PBOC Governor Pan Gongsheng. -0-