Chinese authority are moving further to support commercial banks' perpetual bond issuance to replenish capital, the latest efforts aimed at spurring lending to private companies and supporting a slowing economy.
The People's Bank of China (PBOC) has decided to launch Central Bank Bills Swap (CBS), a tool allowing primary dealers engaged in an open-market operation to swap the perpetual bonds they hold for the central bank bills, to increase liquidity of the perpetual bonds, according to a statement released by the central bank late Thursday.
The move can increase the liquidity of perpetual bonds, enhance market enthusiasm in . . .
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