PBOC Starts $71 Billion Liquidity Tool for Stock Investors (1)

China’s central bank has set up a swap facility to provide liquidity to institutional investors to buy stocks, part of a broad stimulus package announced earlier that ignited a rally in equities.

The People’s Bank of China will accept applications from eligible securities firms, funds and insurers starting Thursday to obtain highly liquid assets such as government bonds and central bank bills if they provide certain collateral. The size of the tool is 500 billion yuan ($70.6 billion) and can be expanded in the future, the monetary authority said in a statement.

PBOC Governor Pan Gongsheng unveiled the mechanism as ...