MNI: Xinhua:PBOC May Raise Liquidity to Help Corporate Funding

     BEIJING (MNI) - The People's Bank of China (PBOC) will increase the amount

of refinancing and rediscount according to market demand, should the quota of

CNY300 billion released earlier gets used, Governor Yi Gang said in an interview

with Xinhua News Agency on Tuesday.

     The PBOC issued a record amount of the liquidity tool this year, including

CNY150 billion in both June and October, as private companies continue to face

difficulties obtaining loans to sustain operations. 

     The central bank will inject liquidity to private companies mostly through

using bonds, credits and equities, Yi told Xinhua.

     The PBOC will further expand the pilot program of private enterprise bond

financing supporting tool, Yi said. At present, 30 private firms are preparing

for the issuance of debt financing instruments, Xinhua said.

     The central bank will also promote the establishment of equity financing

supporting tools for private companies, encouraging private equities, securities

brokers, commercial banks, financial asset investment companies to provide

equity financing support for private firms, Yi said.

     For a link to the Xinhua report, see https://bit.ly/2yWsvH3.

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

[TOPICS: MMQPB$,M$A$$$,M$Q$$$,MI$$$$,MBQ$$$,MGQ$$$]