The People’s Bank of China (PBOC) has undertaken its fourth central bank bills swap (CBS) operation in order to give support to perpetual bonds issued by the Chinese commercial banks.
According to a statement from PBOC the CBS operations undertaken on 11 September 2019 were worth 5 billion yuan, and were open to bidding by primary dealers.
The operation involved the exchange for 3 month (91 day) central bank bills by PBOC, with a coupon rate of 2.35%.
The People’s Bank of China has undertaken four CBS operations to date, with prior operations taking place in on 20 February, 27 June and 9 August.
PBOC previously said that the chief purpose of CBS operations are to increase the initial level of market acceptance for perpetual bonds issued by Chinese markets, as well as to guide market expectations.