Beijing:The People’s Bank of China announced it will intensify its re-lending policy to support capital market stability. The policy adjustments include a reduction in the re-lending facility’s interest rate by 25 basis points, bringing it down to 1%.

According to Qatar News Agency, this facility is accessible to 21 national banks and five systemically important city commercial banks. It covers 100% of eligible loans, has a one-year term, and can be extended based on banks’ requirements.

Additionally, the People’s Bank of China plans to conduct the third operation of the Securities, Funds, and Insurance companies Swap Facility (SFISF). This initiative aims to provide financial institutions with the necessary funding to increase their stock purchasing capacity. The swap operation will initially have a one-year term, with the possibility of extension.

A total of 31 securities and fund companies have applied for the facility, with requests exceeding 100 billion yuan (approximately USD 14.89 billion), as noted in the announcement.