China's Central Bank Sets up Non-Bank Financial Institution Bond Market Swap Facility

China Launches Swap Facility to Support Nonbanks During Bond-Market Stress

China Launches Swap Facility to Support Nonbanks During Bond-Market Stress - The central bank’s new tool will let eligible asset managers raise cash against borrowed central bank bills to address heavy redemptions

China's central bank sets up non-bank financial institution bond market swap facility

China's central bank has introduced the Bond Market NBFI Swap Facility as of Monday. This initiative is designed to stabilize the bond market amid potential systemic stress or liquidity issues. Bank wealth management subsidiaries and public fund managers will gain access to central bank bills, enabling them to finance the purchase of qualifying bonds or units facing redemption, which can be pledged for central bank support.

China's Central Bank Establishes Bond Swap Facility for Large Redemptions

Eligible institutions could borrow central bank bills to raise cash and buy assets from publicly offered products facing withdrawals.