China Launches $70 Billion Facility to Boost Stock Market Liquidity

The People's Bank of China introduces a swap tool to stabilize capital markets amid economic slowdown.

The new Securities, Funds and Insurance Companies Swap Facility is initially set at 500 billion yuan, equivalent to $70.7 billion.
This facility allows securities firms, funds, and insurers to exchange corporate bonds and stock ETFs for government bonds and central bank bills.
The initiative aims to enhance liquidity in China's stock market, which has seen volatility due to economic uncertainties.
The swap tool is part of a broader stimulus package by the PBOC to support the slowing economy and boost investor confidence.
The announcement has spurred a rebound in Chinese and Hong Kong stock indices, with significant gains reported across major markets.