PBOC Governor provides directions for stock buybacks

Chinese state media with comments from Pan Gongsheng, People’s Bank of China governor

• PBOC
  provides specific directions for stock buybacks and reloans to
  increase holdings, and it is the bottom line that credit funds cannot
  enter stock market in violation of regulations

• Central
  bank’s provision of stock buyback and additional purchase re-loans
  has specific directional aims, and a fundamental bottom line is that
  loan funds must not unlawfully enter the stock market
• The two tools to support the stable development of the capital
  market are entirely based on market-oriented principles, and swap
  facility is not direct financial support from central bank

This article was written by Eamonn Sheridan at www.forexlive.com.