People's Bank Governor Pan Gongsheng stated at the 2024 Financial Street Forum Annual Meeting that two financial instruments supporting the stable development of the capital markets, the People's Bank, together with the Securities Regulatory Commission and the Financial Supervision Administration, have established a special task force. Securities, funds, and insurance companies now accept applications from financial institutions for convenient exchange. The policy documents on share buyback, shareholding special refinancing were released and implemented today.

Governor of the People's Bank of China, Pan Gongsheng: The People's Bank of China provides specific guidance for share buyback, shareholding refinancing. It is a bottom line that credit funds cannot illegally enter the stock market.

China's central bank governor Pan Gongsheng stated that the central bank's share buyback and shareholding rediscount loans have specific targets, and it is the bottom line that credit funds cannot illegally enter the stock market.

Pan Gongsheng, the President of the People's Bank of China, stated that it is expected that by the end of the year, based on the market liquidity situation, there will be further reductions in the reserve requirement ratio of 0.25-0.5 percentage points.

Central bank governor Pan Gongsheng stated that on September 27th, the reserve requirement ratio was reduced by 0.5 percentage points. It is expected that by the end of the year, depending on the market liquidity situation, the reserve requirement ratio will be further reduced by 0.25-0.5 percentage points; the 7-day reverse repurchase operation interest rate in the open market was lowered by 0.2 percentage points; the medium-term lending facility rate was lowered by 0.3 percentage points. This morning, commercial banks have already announced a reduction in deposit rates, and it is expected that the loan market quote rate (LPR) announced on the 21st will also decrease by 0.2-0.25 percentage points.

Governor of the People's Bank of China, Pan Gongsheng: Easy exchange is not direct funding support provided by the People's Bank of China.

China's central bank governor Pan Gongsheng emphasized that the two tools that help stabilize the development of capital markets are completely based on market principles, and the swap facility is not directly provided with funding support by the central bank.

Li Yunze, Director of the China Banking and Insurance Regulatory Commission: supports eligible insurance institutions to establish new securities investment funds.

Li Yunze, Director of the China Banking and Insurance Regulatory Commission, stated that they support eligible insurance institutions to establish new securities investment funds, and currently, many insurance companies have submitted relevant applications.

Chairman Wu Qing of the China Securities Regulatory Commission: Broadening overseas listing channels.

Chairman Wu Qing of the China Securities Regulatory Commission stated at the 2024 Financial Street Forum Annual Meeting on the 18th that the commission will resolutely continue to promote comprehensive institutional opening of the market and institutions, expand overseas listing channels, and encourage foreign institutions to invest and operate in China.

The People's Bank of China officially launched share buyback and shareholding rediscount: the first-phase quota for rediscount is 300 billion yuan, with an interest rate of 1.75%.

The People's Bank of China has officially launched the stock repurchase and shareholding refinancing scheme. Starting today, 21 national financial institutions can provide related loans to qualified listed companies and major shareholders. In the first month of the next quarter, they can apply for refinancing from the People's Bank of China. For eligible loans, the People's Bank of China provides refinancing support equivalent to 100% of the loan principal. The initial refinancing quota is 300 billion yuan, with an interest rate of 1.75% and a term of 1 year, extendable depending on the situation, with a cumulative estimated term of up to 3 years.

The People's Bank of China officially launched the Securities, Fund, and Insurance companies Interchange Facilitation System (SFISF) operation from today.

The People's Bank of China recently created the Securities, Fund, and Insurance companies Interchange Facilitation System (SFISF). To ensure the smooth operation of the tool, on October 18, the People's Bank of China and the China Securities Regulatory Commission jointly issued a notice on "Ensuring the smooth operation of the Securities, Fund, and Insurance companies Interchange Facilitation System (SFISF)", clarifying the business processes, operational elements, rights and obligations of the parties involved in the interchange facility operation.

The People's Bank of China has entrusted specific open market operations primary dealers (ChinaBond Credit Enhancement Corporation) to conduct swap transactions with securities, funds, and insurance companies that meet the conditions of industry regulatory authorities. The swap term is 1 year, extendable as needed. The swap rate is determined through competitive bidding by participating institutions. Eligible collateral includes bonds, stock ETFs, CSI 300 index components, and public offerings.Real Estate Investment TrustsWait, the discount rate is set according to the risk characteristics of the pledged assets. The funds obtained through this tool can only be invested in the capital markets, for investment in stocks, stock ETFs, and market-making.

Currently, 20 securities and fund companies have been approved to participate in the swap facility operation, with the initial application quota exceeding 200 billion yuan. Starting today, the People's Bank of China will officially launch operations based on the needs of participating institutions to support the stable development of the capital markets.

$FTSE China A50 Index (.FTXIN9.CN)$ A straight rise during the trading session, now up nearly 1%.

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