PBoC governor Pan Gongsheng unveiled the tool as part of a stimulus bonanza last month that signalled the government’s intent to draw a line under the slowing economy. — Bloomberg
BEIJING: China’s central bank has set up a swap facility to provide liquidity to institutional investors to buy stocks, part of a broad stimulus package announced earlier that ignited a rally in stocks.
The People’s Bank of China (PBoC) will accept applications from eligible securities firms, funds and insurers starting yesterday to obtain highly liquid assets such as government bonds and central bank bills if they provide certain collaterals, according to the bank’s statement.
