BeijingChina’s central bank will lend to funds, not just banks.
Governor Pan Gongsheng said the facility targets mass redemptions that spiral into bond-market fire sales.
Eligible brokers and mutual funds must pledge high-grade collateral and meet macroprudential rules, Pan said, to avoid implying an unconditional backstop.
Eight onshore and offshore yuan clearing banks may also trade for their own account in the onshore interbank currency market.
The central bank has not named the eight banks or a start date.
How each outlet framed it
- South China Morning Post
- foregrounds the PBOC's new liquidity tool for non-bank financial institutions as a firewall against bond-market systemic stress from mass redemptions
Sources: South China Morning Post