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China's Central Bank Expands Collateral for Mid-Term Lending

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A man rides a bicycle past the People's Bank of China headquarters in Beijing.

A man rides a bicycle past the People's Bank of China headquarters in Beijing.

Photographer: Qilai Shen/Bloomberg
Updated on

China’s central bank broadened the range of collateral it accepts in its medium term lending operations, adding debt instruments tied to small-business funding and the green economy.

The People’s Bank of China said it will accept assets including AA-and-above-rated bonds backed by credit to small companies, the green economy, or agriculture, as well as corporate bonds with AA+ and AA ratings, and quality loans to small and green businesses as MLF collateral, according to a statement published on its website late Friday.