Beijing launches US$15b asset swap to support China’s markets after sell-off
China’s central bank announced on Monday it would start a fresh round of a swap facility to support the struggling A-share market, after its worst sell-off in almost a decade dealt a heavy blow to investor confidence and threatened to bring new risks to the country’s financial system.
The People’s Bank of China (PBOC) would have a one-year swap that allows institutional investors to exchange illiquid assets for liquid ones with the central bank to buy stocks, according to its statement.
Thirty-one institutions have applied for the programme with combined size of 100 billion yuan (US$15.04 billion), it added.
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