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 . . .
To continue reading, please subscribe.
We highly value independence. Yuan Talks is solely funded by subscriptions from readers like you.
What you'll get:
- High-quality & in-depth reporting on the most important topics about China's economy and financial markets
- Daily Brief newsletter to give you a full picture of what's happening in China every weekday
- Interviews with China experts
- Conference calls and events
We are not content with general information that you can get everywhere. We go deeper to get details, data and perspectives you won't read elsewhere!
Already have an account? Sign In