PBOC Takes Action! Third SFISF Operation Tender to Launch Tomorrow, Applications Exceed RMB100 Billion

This morning, the People's Bank of China (PBOC), the China Securities Regulatory Commission (CSRC), and several securities firms and fund companies held a symposium. According to attendees, the PBOC stated at the meeting that it will launch the third Securities, Funds, and Insurance Companies Swap Facility (SFISF) operation tender tomorrow. Just now, the PBOC's Monetary Policy Department also issued an announcement showing that, in order to support the healthy and stable development of the capital market, the PBOC will conduct a Securities, Funds, and Insurance Companies Swap Facility operation on November 3, with a swap term of 1 year, extendable as appropriate. Currently, 31 securities and fund companies have submitted demands, with application amounts exceeding RMB100 billion. According to Cailianshe reporters, based on preliminary research, institutions showed strong willingness to apply, with 31 institutions having application needs. This means the number of participating institutions in this tool has increased, up from 20 previously. At the same time, it is understood that at the meeting, the PBOC also stated that it will reasonably satisfy extension intentions, and the extension swap fee rate is expected to be lowered. "Recently, the stock market situation has changed considerably, and as a result, financial regulatory authorities organized a special symposium to discuss and study corresponding countermeasures," an attendee told Cailianshe reporters. In the short term, after excessive declines, in order to avoid a negative cycle, it is indeed necessary for financial regulatory authorities to act promptly to stabilize confidence. The securities firms and fund institutions participating in this meeting are also the main force in stabilizing the market, and will subsequently play a leading role, further leveraging professional strength to enhance market confidence. Attendees told Cailianshe reporters that the swap facility operation is a beneficial exploration in supporting the capital market. This symposium once again sounded the assembly call, and securities firms, funds, and other institutions will subsequently actively and proactively make good use of the swap facility tool, and after successful applications, promptly direct incremental funds into the capital market. This article is reprinted from "Cailianshe", GMTEight editor: Xu Wenqiang.