The People's Bank of China (PBOC) will create new monetary policy tools to support the steady development of the stock market, the central bank governor said Tuesday.
The central bank will establish a swap program for eligible securities, funds and insurance companies, allowing them to use their holdings of bonds, stock ETFs, CSI 300 constituent stocks and other assets as collateral to obtain high-liquid assets such as government bonds and central bank bills from the PBOC, Pan Gongsheng, governor of the Chinese central bank, told a press conference.
"The swap with the central bank for high-quality liquid assets will significantly increase institutions’ ability to acquire funds and buy stocks. We intend to commence the swap facility with an initial operational scale of 500 billion yuan (about 71.04 billion U.S. dollars) and the scale may be expanded in the future depending on circumstances. The funds acquired through this tool are designated solely for investments in the stock market," explained Pan.
The central bank will also create a special re-lending facility to guide banks to provide loans to listed companies and their major shareholders for buybacks and increasing shareholdings, Pan said.
"The initial quota is 300 billion yuan (around 42.63 billion U.S. dollars). This tool is suitable for listed companies of various ownership structures, such as state-owned enterprises, private enterprises, and mixed-ownership enterprises. We do not distinguish based on ownership," state Pan.
China to create new monetary policy tools to support stock market: official
China to create new monetary policy tools to support stock market: official
An unmanned 10,000-tonne-level heavy haul train completed its first trial run on Thursday in China, marking a breakthrough from automatic driving to unmanned driving on heavy-haul railway.
At 8:36 local time, the test train departed from Huanghua South Station in north China's Hebei Province on the Shuozhou-Huanghua Railway, one of the major heavy-haul railways for China's west-to-east coal transportation program, and arrived at Dongying West Station in east China's Shandong Province following two and a half hours of smooth operation.
The train consists of 108 carriages, with a total length of about 1,300 meters and a total load of 10,800 tonnes.
China has achieved independent control from key technologies to management and control modes.
"The trial operation of this unmanned heavy haul train has achieved the system-wide upgrade including automatic driving, intelligent operation and maintenance, and dispatching and centralized control. Through the remote-control console, the train's operating status can be monitored in real time and intelligently, realizing total factor control of the train's movement, static state, and change," said Zhou Zhansong, director of heavy haul train traction technology laboratory of Shuohuang Railway Development Co., Ltd. under China Energy.
During the test, there are three technologies filling in the domestic gaps in related fields, realizing unmanned train driving and station control.
After the mass application of the unmanned driving technology, it is expected that the average running speed of trains will rise by 1.7 km per hour and the average traction energy consumption will decrease by 2.9 percent, which will greatly improve the efficiency of west-to-east coal transportation in China.
The Shuozhou-Huanghua Railway, linking the coal base of Shanxi Province and the Huanghua Port in Hebei Province, is China's second-largest channel for coal transport.
China successfully tests unmanned 10,000-tonne-level heavy haul train
