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.