• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

China central bank conducts first operations under swap facility to bolster stock market

by October 21, 2024
written by October 21, 2024

SHANGHAI (Reuters) -China’s central bank conducted its first operations on Monday under a swap facility designed to bolster the stock market, exchanging assets worth 50 billion yuan ($7 billion) with brokerages, fund companies and insurers.

The People’s Bank of China (PBOC) said 20 institutions participated in the swap operations with a fee rate of 20 basis points.

The PBOC kicked off the swap facility on Friday, part of broader efforts to reinvigorate China’s stock market and an economy bruised by a property sector crisis and weak consumption.

Chinese shares surged after Beijing unveiled on Sept. 24 the most aggressive stimulus since the pandemic, but the rally has lost steam over the past weeks as euphoria turned into caution.

“The swap scheme was set up with the sole purpose of improving market liquidity, as the funding can only be used to buy stocks,” said Wang Mengying, analyst at Nanhua Futures, who believes China’s bull run still has legs.

Under the swap scheme, initially worth 500 billion yuan, brokerages, asset managers and insurers can have easier access to funding by exchanging risk assets such as stock ETFs and blue-chip stocks for highly liquid assets such as treasury bonds and central bank bills.

The first batch of 20 participants include China International Capital Corp (CICC), Citic Securities, China Asset Management Co and E Fund Management Co.

Separately, more than 20 Chinese listed companies, including China Petroleum (OTC:SNPTY) and Chemical Corp (Sinopec (OTC:SHIIY)) and China Merchants Port Group have announced plans to tap special central bank lending for share buybacks and purchases in another newly-created funding scheme, initially worth 500 billion yuan.

($1 = 7.1111 Chinese yuan renminbi)

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Forvia shares jump as Q3 sales beat expectations, FY24 guidance reaffirmed
next post
Apple Intelligence unlikely to boost iPhone sales: Jefferies

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Oracle misses quarterly results estimates on stiff cloud competition
    • China open to talks with Trump’s economic, trade team, commerce ministry says

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy