China Moves Stock Repurchase and Shareholding Loan Program to Long-Term Arrangement

China’s central bank and two financial regulators moved a stock repurchase and shareholding-increase loan program to a long-term arrangement and cut its relending rate to 1%, extending a capital-market support tool.

The National Financial Regulatory Administration (NFRA), the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) announced the move Monday, Nov. 2. The rate fell from 1.25%, and the program began in October 2024.

Agreements signed under the program totaled about 440 billion yuan, while total disbursements topped 280 billion yuan. The credit supports stock repurchases and increases in shareholdings.

A separate swap facility for securities firms, funds and insurers had 105 billion yuan outstanding. Regulators plan additional operations when appropriate, more participating institutions and appropriate cuts to swap fee rates.