The People’s Bank of China executed 100 billion yuan of 1 year swap facility transactions on Nov 3 at an awarded rate of 10 basis points across 31 bidding securities and fund firms. Chinese equities still declined on Tuesday, with the STAR 50 index dropping nearly 4% to its lowest level since April 2025 and the CSI 300 closing 0.2% lower, even as trading volume across ETFs favored by state backed investors reached 120 billion yuan ($18 billion), the highest since late January.
The operation marks the third batch under the 500 billion yuan Securities, Funds and Insurance Companies Swap Facility, which allows institutions to pledge stock ETFs, CSI 300 constituent shares and bonds to the central bank in exchange for liquid treasury bills and central bank bills to fund equity purchases. The first two batches totaled 105 billion yuan across 28 participating firms.