The Postal Savings Bank of China (PSBC) actively responded to the latest policy of the Securities, Funds and Insurance companies Swap Facility (SFISF) jointly launched by the People’s Bank of China (hereinafter referred to as PBOC) and two other authorities (the National Financial Regulatory Administration and China Securities Regulatory Commission), and completed its first bond buyback transaction with a top brokerage under the SFISF on October 22, becoming one of the first batch of institutions to participate in the SFISF operation.

SFISF, established by the PBOC, is an important innovative tool which allows eligible securities, funds and insurance companies to enhance their capabilities to obtain funds, so as to support the healthy and stable development of the capital market. The PBOC has designated China Bond Insurance Corporation as the specific primary dealer of open market operations to conduct swap transactions with eligible securities, funds and insurance companies. The funds obtained under the SFISF should be used exclusively for investments in the capital market, to be more specific, for stock and stock ETF investments and market-making.