China Injects $112 Billion to Stabilize Stock Market

The People's Bank of China launches two funding schemes to boost liquidity and support capital markets amid economic challenges.

The People's Bank of China has introduced swap and relending schemes worth 800 billion yuan to support the stock market.
The swap scheme allows financial institutions to obtain liquidity from the central bank by collateralizing assets, initially involving 20 approved companies.
The relending program, set at a 1.75% interest rate, permits banks to fund share purchases by listed companies and their major shareholders.
China's central bank governor, Pan Gongsheng, indicated potential further interest rate cuts and adjustments to the reserve requirement ratio to bolster the economy.
Financial regulators have urged swift implementation of these expansive policies to ensure steady development of China's capital markets.