The Chinese mainland's central bank, the People's Bank of China (PBOC), announced on Thursday the establishment of the Securities, Funds, and Insurance companies Swap Facility (SFISF). This initiative is designed to promote stable growth within the capital market by offering financial institutions enhanced liquidity options.
Pan Gongsheng, the governor of the central bank, revealed that an additional 500 billion yuan could be introduced if the new swap tool proves effective. This potential injection reflects the PBOC's commitment to fostering a resilient financial environment, supporting businesses, and ensuring sustained economic momentum.
The SFISF is expected to strengthen the synergy between different financial sectors, enabling a more robust response to market fluctuations and external economic pressures. By facilitating smoother capital flows, the PBOC aims to maintain stability and encourage growth in the Chinese mainland's dynamic market landscape.
Reference(s):
PBOC: Another 500 bln yuan possible if new swap tool effective
cgtn.com
