PBOC Starts Share Buyback, Equity Swap Tools to Aid Markets
- Chinese stocks climb on the news, including brokerage shares
- Pan says property, capital markets are among key challenges
The People's Bank of China (PBOC) building in Beijing.
Source: Bloomberg
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China’s central bank kicked off a specialized re-lending facility to help listed companies and major shareholders buy back shares, boosting market optimism over Beijing’s support and sending stocks higher.
The previously announced program offers 300 billion yuan ($42.1 billion) in low-cost loans to 21 eligible commercial banks that lend to qualified companies and shareholders, according to a statement from the People’s Bank of China on Friday.