Chinese authorities have introduced new steps to steady the country's stock market after the benchmark CSI300 index fell 8.5 per cent in October, its weakest month since early 2016, CNA reports. The measures are intended to put more money into shares, lower the cost of loans used for share buy-backs and relax limits on leveraged trading.
The People's Bank of China said it would hold a fresh round of swap operations on Tuesday, letting brokers, fund managers and insurers exchange bonds for more liquid central bank assets that can be used to buy stocks. Thirty-one firms applied for swaps worth more than 100 billion yuan (about US$15bn). Analysts told CNA the moves were aimed mainly at preventing further losses, and that a lasting recovery would depend on stronger growth, better company earnings and renewed investor confidence.
Source: CNA