China cenbank chief warns against any illegal fund flows into stock market
2024.10.17 23:21
BEIJING (Reuters) – The governor of China’s central bank, Pan Gongsheng, warned on Friday against any illegal fund flows into the stock market, state media said, following recent measures to support domestic capital markets.
The People’s Bank of China (PBOC) introduced two new tools in September to support markets.
These were a swap programme giving funds, insurers and brokers easier access to funding for stock buys, and relatively cheap PBOC loans to help banks finance listed companies’ share purchases and buybacks.
Speaking at a financial forum in Beijing, Governor Pan Gongsheng said the two measures were based entirely on market-oriented principles, and the swap facility was not a form of direct financial support from the central bank.
The bank’s provisions regarding stock buybacks and purchases have specific directional aims, and the fundamental bottom line was that loan funds must not unlawfully enter the stock market, Pan added.
