The People's Bank of China announced that two tools created to support stable capital market functioning will now operate with a combined quota of CNY 800 billion, allowing the available amount to be used flexibly across both facilities. The tools, introduced in October 2024 with relevant departments, are a swap facility for securities, fund and insurance companies and a relending facility for share buybacks and shareholding increases. Their initial quotas were CNY 500 billion and CNY 300 billion, respectively, and they have operated on market-based principles. The combined-quota approach applies with immediate effect and is intended to improve usability and flexibility and better accommodate the needs of different types of institutions.
Central Bank of the Republic of China 2025-05-07
People's Bank of China allows combined use of CNY 800 billion quota across two capital market stabilisation tools
The People's Bank of China has combined the quotas of two capital market support tools into a flexible CNY 800 billion limit. These tools include a swap facility for securities, fund, and insurance companies, and a relending facility for share buybacks and shareholding increases. The change aims to enhance usability and flexibility for various institutions.