InvestIdeas

Beijing increasingly relies on the semi-official lenders to support the economy while monetary easing is constrained by rising global interest rates.

The funding boost from PSL "could play a big role in coming months to support credit to targeted areas, such as infrastructure, manufacturing and also low-income housing.

The PBOC said it has extended its bilateral currency swaps with the European Central Bank, worth 350 billion yuan or 45 billion euros.

China's central bank will step up credit support for the economy while keeping the yuan steady.

The economy rebounded at a faster-than-anticipated clip in the third quarter, but a more robust revival in the longer term will be challenged by continuing Covid-related curbs, a prolonged property slump and global recession risks.

As for stalled housing projects, Yi said the PBOC will make 200 billion yuan (HK$216.9 billion) in special loans to ensure work is completed.

One of China’s biggest state-run investors is adding to the chorus of warnings over debt risks at the nation’s cash-strapped developers and local government financing vehicles.

The National Council for Social Security Fund, which oversees about US$417bil (RM1.9 trillion), has advised asset managers that handle its money, to sell some bonds including those from riskier local government financing vehicles (LGFVs) and private developers after a review.

China’s sovereign wealth fund bought exchange-traded funds on Monday, expanding its purchases beyond bank shares.

Central Huijin Investment Ltd., a unit of the US$1.4 trillion ($1.92 trillion) wealth fund China Investment Corp bought an undisclosed amount of ETFs and vowed to keep increasing its holdings.

Huijin may have purchased 10 billion yuan ($1.89 billion) in ETFs. The purchases may be focused on ETFs tracking technology-stock indices, which comes in line with regulators’ support of innovation.

The move came shortly after the sovereign fund bought about US$65 million of shares in the nation’s biggest banks this month,

China is considering forming a state-backed stabilization fund to shore up confidence in its US$9.5 trillion stock market.

Central Huijin’s two previous publicly announced moves to purchase ETFs, which occurred in June 2013 and July 2015, were both followed by gains of more than 20% in Shanghai stock indices within three months.

During the 2015 rout, Beijing tapped China Securities Finance Corp. as its main stabilization vehicle by allowing it to access as much as 3 trillion yuan of borrowed funds from sources including the central bank and commercial lenders. The money was used to buy stocks directly and provide liquidity to brokerages. Even so, the turbulence didn’t end until a year later.