China Moves to Stop Bond Sell-Off Spirals

China moves to shore up capital markets, investors nonplussed

China’s central bank and stock market regulator have moved to shore up capital markets, announcing new mechanisms to bolster bond market liquidity in the event of a crisis and authorising new exchange traded funds (ETFs) to add stability to stock markets. People’s Bank of China (PBOC) governor Pan Gongsheng put a firewall in place to backstop the bond market, announcing the launch of a liquidity facility to help non-bank financial institutions s…

China Moves to Stop Bond Sell-Off Spirals

Investors hoping China would open the money taps got a more selective response on October 19: plans for emergency support in the bond market and approval for 18 new stock investment funds. Officials are moving to stop financial trouble from spreading...

China Plans Liquidity Backstop to Prevent Bond Market Fire Sales

China Plans Liquidity Backstop to Prevent Bond Market Fire Sales - The central bank’s proposed facility will help nonbank financial firms manage large-scale redemptions, with high-grade collateral required to limit moral hazard

China’s Central Bank Plans Joint Liquidity Tool for Nonbank Redemptions

The policy package would also expand eligibility for the Standing Lending Facility and connect China’s interbank and exchange bond markets.