Pan Gongsheng: The People's Bank of China firmly supports China Investment Corporation in increasing holdings of stock market index funds when necessary, and provides sufficient re-lending support.

Pan Gongsheng, the Governor of the People's Bank of China, stated during a press conference at the State Council Information Office today that during the implementation of policies, the People's Bank will continuously summarize practical experience with the China Securities Regulatory Commission and the China Banking and Insurance Regulatory Commission, optimize policy elements in conjunction with various suggestions, and improve the efficiency of policy implementation. First, the two tools with a total quota of 800 billion yuan will be combined for joint use, making both tools accessible after combining the quotas, which will help improve the convenience and flexibility of the tools and better meet the needs of different types of institutions. Second, in terms of convenience for swaps, the scope of participating institutions will be expanded from the initial 20 securities and fund companies to a pool of 40 alternative institutions, with the collateral range including Hong Kong stocks and restricted stocks, and guidance provided to financial infrastructure to reduce business fees. Third, in terms of repurchase and increased loans, the maximum loan term will be extended from 1 year to 3 years, banks will be encouraged to issue credit loans, the requirement for the proportion of self-owned funds for listed companies to repurchase and increase stock holdings will be reduced from 30% to 10%, and state-owned capital operation platforms such as China Chengtong Holdings and China Guoxin Holdings will be included in the support scope. These two companies have already announced their intention to use a total of 180 billion yuan of tool funds to increase their holdings of listed company stocks. In addition, China Investment Corporation is an important strategic force for maintaining the stability of the capital market. The People's Bank firmly supports China Investment Corporation in increasing holdings of stock market index funds when necessary and provides sufficient support for repurchase loans, resolutely maintaining the stable operation of the capital market.