Beijing launches US$15b asset swap to support China’s markets after sell-off

AI Summary

China’s central bank launched a US$15 billion asset-swap facility to support the country’s struggling A-share market after a severe sell-off. The one-year program lets institutional investors exchange illiquid assets for liquid ones to help fund stock purchases and reduce risks to the financial system.

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...