BREAKING

PBOC SETS UP 500 BILLION YUAN OF SFISF (SECURITY, FUNDS AND INSURANCE COMPANIES SWAP FACILITY) FOR THE FIRST TIME, TO PROVIDE LIQUIDITY TO EQUITY-HOLDING FINANCIAL INSTITUTIONS.

According to the latest statement from the PBOC, the 500 billion yuan SFISF is intended to support the stock market. Eligible securities, fund, and insurance companies can use asset pledges including bonds, stock ETFs, and CSI300 stocks to obtain liquidity from the central bank, enhancing their capacity to access funds and increase stock holdings.

This latest announcement marks the implementation of earlier policies. As previously stated by Governor Pan, if this 500 billion yuan tool has a positive impact on the market, further SFISF will be introduced.