The People's Bank of China carried out 5 billion yuan of central bank bill swap operations to support the issuance of "perpetual bonds"
China News Agency, Beijing, December 24 (Reporter Wei Xi) In order to improve the market liquidity of bank perpetual bonds, support banks to issue perpetual bonds to supplement capital, and enhance the ability of financial services to serve the real economy, the Central Bank of China launched on December 24 The Central Bank Bill Swap (CBS) operation was completed.
The volume of this operation is RMB 5 billion, the period is 3 months, and the rate is 0.10%.
This operation is open to public bidding for primary traders of open market business. The winning bidders include various financial institutions such as large state-owned commercial banks, joint-stock banks, city commercial banks, rural commercial banks, and securities companies.
The swap-in bonds include both perpetual bonds issued by large state-owned commercial banks and joint-stock banks, as well as perpetual bonds issued by city commercial banks, reflecting the support for small and medium banks to issue perpetual bonds to supplement capital.
The People's Bank of China stated that it will comprehensively consider market conditions and reasonable demands, and adopt a market-based approach to steadily and cautiously conduct CBS operations.
The Central Bank of China created a central bank bill swap tool in January 2019. Primary dealers in open market businesses can use perpetual bonds issued by qualified banks to exchange for central bank bills.
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