Beijing. China’s central bank on Thursday launched a “swap line” that will give companies access to 500 billion yuan ($70.6 billion) in liquidity, in a new measure to shore up the economy.
The program will allow “qualified companies to exchange bonds, exchange-traded funds, CSI 300 constituent stocks and other assets with the People’s Bank of China for high-quality liquid assets, such as Treasury bonds and central bank bills,” the institution indicated. .
He added that the first phase of the operation will be 500 billion yuan and that “it could be expanded further depending on the situation.”
“Starting today, applications from qualified securities, funds and insurance companies will be accepted.”
The head of the People’s Bank of China, Pan Gongsheng, indicated that the measure will “significantly increase” the ability of companies to access funds to buy shares.
In recent weeks, China began to announce a set of measures to stimulate the economy, especially its real estate sector, which is suffering a debt crisis.
The world’s second-largest economy has struggled to return to growth after pandemic restrictions were lifted at the end of 2022.
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