Share buyback lending rate falls to 1 percent under lasting scheme
The People's Bank of China (PBOC) will turn its lending facility for share buybacks and shareholding increases into a long-term arrangement. Its rate will fall from 1.25 percent to 1 percent, while authorities will also expand access to a securities swap facility.
Lower costs and broader access
Authorities will lower the Securities, Funds and Insurance Companies Swap Facility (SFISF) fee, expand participation and optimize collateral and operating models.
Operations will take place as appropriate.
Banks must price loans on market terms, apply reasonable spreads over the central bank lending rate and increase lending.
Launched in October 2024, the two tools support capital market stability.
The SFISF has been rolled over several times; its outstanding balance is RMB105 billion.
Buyback and shareholding loan contracts total about RMB440 billion, with disbursements exceeding RMB280 billion.
PBOC Deputy Governor Zou Lan, NFRA Vice Minister Cong Lin and CSRC Vice Chairman Liu Haoling addressed the November 2, 2026 meetings.
Lenders and investors report progress
Representatives of 23 securities and fund companies and 26 banks attended, reporting progress and offering suggestions.
Speakers included China International Capital Corporation Limited, Guotai Haitong Securities, CITIC Securities, E Fund Management, Industrial and Commercial Bank of China, China Construction Bank, China CITIC Bank and Industrial Bank.
Officials from the PBOC, the National Financial Regulatory Administration (NFRA), the China Securities Regulatory Commission (CSRC) and the State Council's State-owned Assets Supervision and Administration Commission also attended.
Permanent support replaces temporary lending
The lending facility will become a standing arrangement rather than temporary support.
Authorities link both tools to stronger market resilience, confidence and an intrinsic stabilization mechanism.
They report improved institutional capacity to stabilize markets and listed companies' capacity to manage market value.