The People’s Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission held a meeting on two policy tools designed to support the capital market. According to the meeting statement, the three authorities said they will keep policy support in place to help maintain market stability and improve market resilience and confidence. They also said policy elements and implementation details will be refined so financial institutions can make fuller use of the tools already in place.
The meeting said swap facility operations for securities firms, fund companies, and insurance companies will be launched at an appropriate time. Authorities also plan to expand the number of participating institutions, lower swap fees where appropriate, and optimize collateral and operational arrangements. In addition, the stock buyback and shareholding increase relending program will shift from a temporary arrangement to a long-term institutional framework. The relending rate under that program will be cut from 1.25% to 1%, while financial institutions will continue to follow market-based pricing principles, add a reasonable spread on top of the relending rate, and increase loan issuance.
The People’s Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission held a meeting on two policy tools aimed at supporting the capital market.
The meeting said the three authorities will continue policy support to help maintain capital market stability and improve market resilience and confidence. They also said policy elements and implementation details will be optimized so financial institutions can make full use of the available tools.
Swap facility operations to be launched at an appropriate time
According to the meeting, swap facility operations for securities firms, fund companies, and insurance companies will be carried out at an appropriate time. The authorities also said they will increase the number of participating institutions, lower swap fees where appropriate, and optimize collateral and operating arrangements.
Relending program for buybacks and stake increases becomes long-term
The relending policy for stock buybacks and shareholding increases will be converted from a temporary arrangement into a long-term institutional framework. The relending rate will be reduced from 1.25% to 1%. Financial institutions will follow market-based pricing principles, apply a reasonable spread on top of the relending rate, and increase loan issuance.
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