Postal Savings Bank becomes one of the first institutions in the market to participate in bond repurchase transactions under swap facilities for securities, funds, and insurance companies.

In response to the directives set forth by the central government and the State Council, as well as to support the healthy and stable development of the capital market and the real economy, China Postal Savings Bank has actively engaged with the recent policy initiative from the People’s Bank of China and other ministries regarding the establishment of the Securities, Fund, and Insurance Company Swap Facility (SFISF). On October 22, the bank successfully executed its first bond repurchase transaction under the SFISF with leading brokerage firms, making it one of the first institutions to participate in this innovative tool.

The SFISF is an important tool established by the People’s Bank of China to support qualified securities, fund, and insurance companies in enhancing their funding capabilities, thereby better stabilizing the market and safeguarding it. The bond market’s primary dealers, designated by the central bank, collaborate with eligible securities, fund, and insurance companies to conduct swap transactions. The funds obtained through this tool are exclusively allocated to the capital markets, focusing on investments in stocks and stock ETFs.

Moving forward, China Postal Savings Bank intends to leverage its strengths as a state-owned financial institution. The bank aims to play a pivotal role in serving the real economy and acting as a stabilizing force for financial stability. (Source: China Network)【Editor: Li Runze】