The People’s Bank of China has taken its first steps to support the country’s stock market. The central bank used a new swap facility to add money to the market. This move is meant to keep stock prices stable during uncertain economic times.
The bank did not say how much money it put into the market. China’s stock market has been up and down lately. This is due to challenges in China’s economy and changes in global markets.
The central bank’s actions are seen as a way to boost confidence among investors and keep the stock market steady. Many listed companies in China are also using central bank funds to buy back their own shares. This shows they are confident despite the current economic situation.
Central bank boosts market confidence
The central bank’s support comes as the government works to ease financial pressure and make markets more stable. Companies are taking advantage of the money provided by the central bank to prop up their stock prices.
New data shows that China’s economy grew at its slowest pace in a year and a half. The central bank quickly announced more details of its plan to boost markets after this news came out. The GDP numbers for the third quarter showed growth of 4.6% compared to last year.
This was the slowest growth in six quarters. The central bank governor, Pan Gongsheng, pointed to real estate and stock markets as key areas that need targeted policy support. Experts say the latest figures show the health of China’s economy and what the government’s policies mean for the future.
The central bank’s quick actions show it is working to stabilize and energize the financial world as economic challenges continue.
