On Nov. 2 the PBOC, the National Administration of Financial Regulation and the
CSRC held meetings on an inter-institution swap facility for securities, fund
and insurance firms and on re-loans to support share buybacks. Huafu Securities
research head Ren Zhiqiang said the package advances multiple market-stabilizing
steps: expand and cut fees for the swap facility among securities, fund and
insurance companies; convert buyback re-loans into a permanent facility and
lower the rate to reduce institutional funding costs and encourage orderly
institutional buying; relax limits and clarify participant duties for
stabilization-style repo operations and create a closed-loop special repo fund
to underpin corporate buybacks; accelerate rollout of initial active ETFs and
expand equity fund supply to guide public funds’ countercyclical positioning;
and apply countercyclical optimization to margin-financing risk metrics to
modestly release financing capacity and mobilize existing trading funds. Ren
said the measures aim to repair near-term expectations while building
longer-term institutional stability and thereby enhance market resilience to
support orderly capital market functioning.
