China's central bank conducts first SFISF operation of 50 billion yuan

(ECNS) -- The People's Bank of China (PBOC) has conducted its first operation of the Securities, Funds and Insurance Companies Swap Facility (SFISF), with a scale of 50 billion yuan ($7.04 billion), according to the central bank on Monday.  

An insider expects that the central bank will further carry out operations based on market trends and institutional demands.

After the cumulative operation volume reaches the limit of 500 billion yuan, the central bank might further expand the scale of operations depending on situations, the insider predicted.

PBOC, the central bank, launched the SFISF on Oct. 10, with an initial scale of 500 billion yuan, as part of efforts to support the healthy, stable development of the capital market. 

The tool will allow eligible securities, funds and insurance companies to use their assets -- including bonds, stock exchange-traded funds and constituent stocks of the CSI 300 Index -- as collateral in exchange for highly liquid assets such as treasury bonds and central bank bills, according to the PBOC.

As of Oct. 18, a total of 20 securities and funds companies were approved for participation in SFISF operations, with the first batch of applications exceeding 200 billion yuan.