China central bank announces bill swaps to support bank perpetual issuance

SHANGHAI (Reuters) – China’s central bank said that it would implement 1-year central bank bill swaps worth 1.5 billion yuan ($222.02 million) on Wednesday to improve the liquidity of banks’ perpetual bonds, and support issuance of the bonds to replenish capital.

The People’s Bank of China (PBOC) made the announcement in a statement on its website on Wednesday.

PBOC Vice Governor Pan Gongsheng said on Tuesday that China would provide further support for banks’ perpetual bond issuance, including examining ways to broaden the investor base for such bonds, to help boost lending in the economy.

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