Key facts
- The People's Bank of China said the swap would run for one year and total $15 billion.
- The facility lets institutional investors exchange illiquid assets for liquid ones with the central bank to buy stocks.
- The announcement followed the A-share market's worst sell-off in almost a decade, according to the report.
The People's Bank of China announced on Monday that it would start a fresh round of a swap facility to support the A-share market, according to the report. Under the program, institutional investors can exchange illiquid assets for liquid ones with the central bank in order to buy stocks. The facility runs for one year and totals $15 billion.
The announcement followed the A-share market's worst sell-off in almost a decade, which the report said dealt a heavy blow to investor confidence and threatened to bring new risks to the country's financial system. The report did not name the specific assets eligible for the swap or the institutions taking part.