China’s Central Bank conducts first operations under swap facility
The Central Bank of China conducted its first operations under a swap facility for securities, funds and insurance companies, exchanging assets worth 50 billion yuan (around $7 billion), Kazinform News Agency correspondent reports.
The establishment of a swap facility worth 500 billion yuan (around 71 billion US dollars) for securities, funds and insurance companies or SFISF aims at ‘stable and sound development of the capital market’.
The funds obtained through the swap facility are to be invested in the stock market only, with the possibility of a further expansion depending on the evolving situation, the Central Bank of China informed.
Earlier it was reported that SFISF will enable relevant securities, funds and insurance companies exchange assets, including obligations, stock funds and stocks in CSI 300 Index, for highly liquid assets such as treasury bonds and central bank bills.