China’s central bank has opened a $70.6 billion liquidity facility to boost stock purchases, part of a broader effort to revive the country’s sluggish economy.
The move follows recent stimulus measures, including interest rate cuts and relaxed home-buying rules, to address the country’s property debt crisis and weak consumer spending.
The People’s Bank of China (PBoC) aims to “significantly enhance” firms’ ability to access funds, using equities and bonds as collateral. While markets initially surged on the news, analysts say further fiscal support is necessary to sustain growth.
