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The PBOC announced a program worth 300 billion yuan ($42.1 billion) in September, which will offer low-interest loans to 21 commercial banks for companies and shareholders meeting specific criteria, as a recent PBOC statement reads.
Banks can access one-year loans at an annual interest rate of 1.75%, which is lower than the medium-term lending facility rate of 2%. In a statement, the Chinese central bank announced that it will supply money for financial firms to offer loans, with the firms handling the risks on their own.
The PBOC recently announced another program to support the stock market, called a swap facility, which allows institutional investors to access liquidity for purchasing shares. The regulator stated that applications from participants for this program have exceeded 200 billion yuan.
The plan, starting with a size of 500 billion yuan, enables investors to get easily tradable assets from the PBOC using their current bond holdings, ETFs, and some stocks.
source: reuters.com
Banks can access one-year loans at an annual interest rate of 1.75%, which is lower than the medium-term lending facility rate of 2%. In a statement, the Chinese central bank announced that it will supply money for financial firms to offer loans, with the firms handling the risks on their own.
The PBOC recently announced another program to support the stock market, called a swap facility, which allows institutional investors to access liquidity for purchasing shares. The regulator stated that applications from participants for this program have exceeded 200 billion yuan.
The plan, starting with a size of 500 billion yuan, enables investors to get easily tradable assets from the PBOC using their current bond holdings, ETFs, and some stocks.
source: reuters.com
