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Sources Close to PBOC: Scope of Collateral for Swap Facility May Be Expanded as Appropriate
The People's Bank of China (PBOC) announced on 10 October the foundation of a "Securities, Funds and Insurance Companies Swap Facility (SFISF)" to support these insti...
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Sources Close to PBOC: Scope of Collateral for Swap Facility May Be Expanded as Appropriate
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The People's Bank of China (PBOC) announced on 10 October the foundation of a "Securities, Funds and Insurance Companies Swap Facility (SFISF)" to support these institutions in swapping assets, such as mortgage bonds and stock ETFs, for highly liquid assets. The initial operating scale is RMB500 billion, which can be expanded in the future depending on the situation.

According to Securities Times, citing sources within the circle of the PBOC, the term of the swap facility will not be more than one year, and it can be extended upon maturity. The range of collateral may be expanded in the future depending on the situation. The operational flexibility indicates that the tool will have a great role to play in the future.

Related NewsDBS Elevates CHINA LIFE (02628.HK) TP to $20 w/ Higher Earnings Forecast
The PBOC will reportedly conduct operations through specific primary dealers. By looking at the list of primary dealers, it is likely to be China Bond Insurance Corporation (CBIC).

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