Beijing launches US$15b asset swap to support China’s markets after sell-off

Beijing launches US$15b asset swap to support China’s markets after sell-off

China’s central bank announced on Monday it would start a fresh round of a swap facility to channel about US$15 billion into the struggling onshore stock market, after its worst sell-off in almost a decade dealt a heavy blow to investor confidence and threatened to bring new risks to the country’s financial system. The People’s Bank of China will start the one-year swap on Tuesday. The facility allows institutional investors to exchange illiquid assets for liquid ones with the central bank to...