The central bank and the China Securities Regulatory Commission (CSRC) released significant news, announcing that the CSRC has expanded the scope of institutions participating in the swap facility to 40. At the same time, the second swap facility operation will begin today, with an expected scale of no less than 50 billion yuan.
On Tuesday, December 31, the CSRC announced the expansion of the swap facility participant institutions:
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In order to implement the spirit of the Central Economic Work Conference and the requirements of the National Financial System Work Conference, relevant institutions actively applied. The China Securities Regulatory Commission, in conjunction with the People's Bank of China, has selected an additional 20 participating institutions based on the initial 20, according to classification evaluation, compliance, and risk control conditions, forming a pool of 40 candidate institutions. For each batch of operations, about 20 institutions will be selected based on the intended participation scale to participate in the People's Bank of China bidding operation.
Previously, we, in conjunction with the People's Bank of China, conducted the first operation of the swap facility for securities and fund companies, with an operating amount of 50 billion yuan, and 20 securities and fund companies participated in the bidding. Since the implementation of the tool, relevant institutions have actively carried out swap facility operations, steadily financing and investing according to market conditions. As of now, the first batch of operations has been fully implemented, with actual disbursement exceeding 90%, playing a positive role in maintaining the stable operation of the capital market.
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At the same time, the CSRC announced that the second swap facility operation will begin today. The CSRC stated:
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Currently, all preparations for the second swap facility operation are ready, and operations will begin today. The China Securities Regulatory Commission requires relevant institutions to fully leverage their professional investment capabilities, strengthen compliance and risk control management, effectively utilize the monetary policy tool for stabilizing the market, and enhance and improve market expectation management to promote the stable and healthy development of the capital market.
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The central bank also announced:
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To support the healthy and stable development of the capital market, the People's Bank of China will soon carry out the second swap facility operation for securities, fund, and insurance companies, with a swap term of 1 year, extendable as needed, targeting eligible securities, fund, and insurance companies. The swap rate will be determined by the bidding of participating institutions. Institutions can start submitting applications from today.
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According to analysis from e company, the scale of the second swap facility operation is expected to be no less than 50 billion yuan:
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On October 18 of this year, the People's Bank of China conducted the first swap facility operation with a scale of 50 billion yuan. By the end of the year, the aforementioned 50 billion yuan has been nearly exhausted, with positive market feedback. It is understood that 20 securities and fund companies participated in the first operation, and the second operation will also add several securities and fund companies as well as 5 leading insurance institutions, with the expected volume of the second operation to be no less than 50 billion yuan.
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00023

Analysis indicates that the second operation will add multiple securities and fund companies, as well as 5 leading insurance institutions, with an expected scale of no less than 50 billion yuan

- The China Securities Regulatory Commission (CSRC) has expanded the range of institutions eligible for swap facilities to 40, initiating the second swap operation today with an expected scale of at least 50 billion yuan.  
- This decision follows the central economic work conference and aims to enhance market stability through effective monetary policy tools.  
- The first swap operation, conducted in October, involved 20 institutions and successfully utilized the initial 50 billion yuan, prompting the need for additional operations to support the capital market's healthy development.

Wallstreetcn

BANK OF E ASIA

Central Bank and CSRC make a significant announcement! Expand the scope of participating institutions for swaps, with the second operation starting today