China is taking drastic measures to revive its struggling economy. On October 21, 2024, the People’s Bank of China (PBOC) executed its first swap operation under a newly established facility, exchanging assets worth 50 billion yuan ($7.03 billion) with 20 brokerages, fund companies, and insurers.
The goal? To inject much-needed liquidity into the stock market, which has been hit hard by a property sector crisis and weak consumer spending. By setting the swap fee at 20 basis points, the PBOC hopes to stabilize financial markets and prevent further economic downturn.
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