Major Chinese Brokerages Execute First A-Share Purchases Under New Swap Facility

In a significant move to boost market liquidity and stabilize investor confidence, several leading Chinese brokerages, including CITIC Securities, CICC, Galaxy Securities, and Guotai Junan, have officially completed their first round of A-share purchases. This development marks the operational implementation of the Securities, Funds, and Insurance Companies Swap Facility (SFISF), signaling an acceleration in the entry of incremental funds into the market.

The People’s Bank of China has been actively promoting these measures, including the implementation of a relending policy for stock repurchases and holdings, to provide institutional support for the equity market. Financial experts, such as Yuan Chuang from Caixin Securities, noted that the third operation of the SFISF underscores the government’s commitment to strengthening market stability and providing robust policy support to counteract volatility.

Market participants have responded positively to the news, as the participation of these industry giants demonstrates a collective effort to bolster the A-share market. By increasing their holdings in both individual stocks and exchange-traded funds (ETFs), these brokerages are acting as a stabilizing force. The move is seen as a clear signal that policy-driven liquidity is beginning to flow into the financial system, aiming to foster a healthier investment environment.

As these major financial institutions continue to execute their purchase plans, the market is expected to see further stabilization. The synergy between government policy and institutional action is being closely watched by investors, who are looking for signs of a sustained recovery. With the SFISF now in full swing, the focus remains on how these incremental funds will influence market trends in the coming weeks and months.

Sources: East Money

Aggregated summary. Original: 东方财富