Announcement on Open Market Business No.6 [2024]

(Open Market Operations Office, October 10, 2024)

To implement the requirements of the Third Plenary Session of the 20th Central Committee of the Communist Party of China on "establishing a long-term mechanism to enhance the internal stability of the capital market" and promote the healthy and stable development of the capital market, the PBOC decides to set up Securities, Funds and Insurance companies Swap Facility (SFISF) to support eligible securities, funds and insurance companies to use their assets including bonds, stock ETFs and holdings of CSI 300 constituent stocks as collateral in exchange for highly liquid assets such as government bonds and central bank bills from the PBOC. The initial scale of the swap operation will be set at RMB500 billion, with possible expansions in the future. As from today, applications are accepted from eligible securities, funds and insurance companies.