China Bank Loan Applications Top 200 Billion Yuan
Applications for a central-bank-backed stock loan scheme have exceeded 200 billion yuan as Beijing lowers its relending rate.
Key takeaways
- Applications for the stock-purchase loan scheme exceeded 200 billion yuan.
- The PBOC cut the relending rate for share buybacks and acquisitions to 1%.
Applications from banks for China’s central-bank-backed stock-purchase loan scheme have exceeded 200 billion yuan ($30 billion), according to The Economic Times. The program supports share buybacks and acquisitions.
The People’s Bank of China said Wednesday it would cut the relending rate for those loans by 25 basis points to 1%, effective that day. Banks may add a reasonable spread when setting loan terms and interest rates.
The PBOC said it had stepped up policies to support buybacks and maintain stable capital market operations. The central bank and financial and securities regulators met major banks on Monday to discuss how to improve the relending policy.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
