China to create new monetary policy tools to support stock market: official
The Chinese central bank will create new monetary policy tools to support the stable development of the stock market, the central bank governor said Tuesday.
The central bank will establish a swap program for securities, funds and insurance companies to obtain liquidity from the central bank through asset collateralization, Pan Gongsheng, governor of the People's Bank of China, told a press conference.
The program will significantly enhance the companies' ability to acquire funds and increase their stock holdings, Pan said.
The central bank will also create a special relending facility to guide banks to provide loans to listed companies and their major shareholders for buybacks and increasing shareholdings, Pan said.
