China to implement bill swaps

China’s Central Bank said it would implement a one-year central bank bill swaps worth 1.5 billion yuan ($222.02 million).
The implementation which would begin on Wednesday was to improve the liquidity of banks’ perpetual bonds, and support issuance of the bonds to replenish capital.
The People’s Bank of China (PBOC) made the announcement in a statement on its website on Wednesday.
PBOC’s Vice Governor, Pan Gongsheng, said that China would provide further support for banks’ perpetual bond issuance, including examining ways to broaden the investor base for such bonds, to help boost lending in the economy.