China plans to encourage financial institutions to make fuller use of two stock-support tools as authorities intensify efforts to stabilize the market and restore confidence.
The People’s Bank of China said it would conduct operations through its swap facility for securities firms, funds and insurers when appropriate. The central bank also plans to expand the number of participating institutions and moderately reduce swap fees.
The measures were outlined in a statement issued Monday after a meeting involving the central bank, financial regulators and market institutions.
Sources: Bloomberg Markets.