(Yicai) Nov. 4 -- The People’s Bank of China, the country’s central bank, has conducted a CNY100 billion (USD14.9 billion) Securities, Funds and Insurance companies Swap Facility operation to support the healthy and stable development of the capital market.

Thirty-one securities and fund management companies participated in the third SFISF operation yesterday, with a winning bid rate of 10 basis points, the PBOC announced yesterday. The operation had a swap term of one year, with the possibility of extension subject to market conditions.

This SFISF operation was the largest of the three, and both the number of participating institutions and the total application quota set new record highs.

Citic Securities secured a winning bid in this SFISF operation, receiving a quota of CNY10 billion (USD1.5 billion), Yicai learned from the broker, which noted it will promptly make proper use of the policy tool in accordance with regulatory rules and leverage its professional strengths as a securities firm to bolster the inherent stability of the capital market and support its steady development.

China International Capital Corporation said yesterday ahead of the PBOC announcement that it is bullish on China’s economic fundamentals and the medium-to-long-term outlook for the domestic capital market, adding that it will continue to follow policy arrangements and actively participate in the third SFISF round to help maintain stable market operations.

However, CICC has not yet confirmed it secured a winning bid during yesterday's SFISF operation.

Launched in October 2024, the SFISF is a structural monetary policy tool rolled out by the PBOC. Under the swap facility, qualified securities firms, fund managers, and insurance companies can pledge eligible assets, including bonds, stock exchange-traded funds, and CSI 300 Index constituent stocks, to the central bank in exchange for high-grade liquid assets, such as treasury bonds and central bank bills.

Proceeds from the swap facility must be exclusively used for stock and stock ETF investment and market-making activities. The swap has a one-year term, with possible extension, and its rate is determined through market-oriented bidding.

Editor: Futura Costaglione