Key facts
- The People's Bank of China said the Bond Market NBFI Swap Facility is designed to stabilize the bond market, not rescue individual firms.
- The PBOC said the facility would be used only in exceptional circumstances, per its third quarter 2026 monetary policy report.
- The central bank said the facility would be withdrawn once bond market liquidity recovered.
- The PBOC said the tool would not shield investors from losses.
The People's Bank of China said its new liquidity facility for nonbank bond-market institutions is intended to stabilize the bond market, not to rescue individual firms or protect investors from losses. The central bank made the statement in its third quarter 2026 monetary policy report, according to a report published on November 12, 2026.
The PBOC said the Bond Market NBFI Swap Facility would be used only in exceptional circumstances and would be withdrawn once bond market liquidity recovered. The report did not state the size of the facility, the terms on which it would be used, or which institutions would be eligible.