What China Is Doing to Support Financial Markets

(Bloomberg) -- China’s policy makers are taking various steps to protect the financial system and capital markets from the fallout from the coronavirus outbreak.

Here’s a list of measures announced by the central bank and finance regulators over the weekend. The nation’s stocks, bonds, foreign exchange, futures and interbank markets all resume trading on Monday.

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People’s Bank of China
Supply 1.2 trillion yuan ($174 billion) to money markets on Monday, meaning a net 150 billion yuan injection Provide banks 300 billion yuan in money for relending Use open market operations and other tools to ensure sufficient liquidity, keep money market rates stable Temporarily remove the cap on forex debt for some firms Be less strict in checking banks’ required reserves at the end of January

People’s Bank of China

Supply 1.2 trillion yuan ($174 billion) to money markets on Monday, meaning a net 150 billion yuan injection
Provide banks 300 billion yuan in money for relending
Use open market operations and other tools to ensure sufficient liquidity, keep money market rates stable
Temporarily remove the cap on forex debt for some firms
Be less strict in checking banks’ required reserves at the end of January

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China Banking and Insurance Regulatory Commission
Lower lending rates and fees for companies and regions most affected by the outbreak Suitably extend the grace period for firms that have difficulty meeting the end-2020 deadline to comply with new asset management rules Allow some insurers to raise their investment in equities from the current limit of 30% of assets Maintain the pace of overall credit expansion and continue to lower borrowing costs across China, especially to manufacturers, and to small and private firms Encourage banks not to call in loans to firms affected by the virus, especially smaller ones; consider rolling over loans

China Banking and Insurance Regulatory Commission

Lower lending rates and fees for companies and regions most affected by the outbreak
Suitably extend the grace period for firms that have difficulty meeting the end-2020 deadline to comply with new asset management rules
Allow some insurers to raise their investment in equities from the current limit of 30% of assets
Maintain the pace of overall credit expansion and continue to lower borrowing costs across China, especially to manufacturers, and to small and private firms
Encourage banks not to call in loans to firms affected by the virus, especially smaller ones; consider rolling over loans

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China Securities Regulatory Commission
Temporarily halt night sessions for futures trading from Feb. 3 Allow some share pledge contracts to be extended by as much as six months Allow listed companies to apply to delay reporting financial results for 2019 and first quarter of 2020 Streamline corporate bond sales, including by allowing financial institutions to submit materials online Raise financing quota for some brokerages and encourage them to boost capital

China Securities Regulatory Commission

Temporarily halt night sessions for futures trading from Feb. 3
Allow some share pledge contracts to be extended by as much as six months
Allow listed companies to apply to delay reporting financial results for 2019 and first quarter of 2020
Streamline corporate bond sales, including by allowing financial institutions to submit materials online
Raise financing quota for some brokerages and encourage them to boost capital

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What China Is Doing to Support Financial Markets

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