China's PBOC Lowers Relending Rate for Stock Buybacks

China's central bank is ramping up efforts to stabilize the country's capital markets, cutting rates on a lending facility for share buybacks and pledging to fully meet future borrowing demand from major lenders to this end.

The People's Bank of China on Wednesday lowered its relending rate for stock buybacks by 25 basis points to 1%, as authorities look to refashion the lending scheme into a more regular policy tool. The rate cut was first signaled on Monday.

Under the relending facility, the PBOC provides 100% low-cost funding support to 21 national banks and five major regional commercial banks on one-year renewable terms, according to a statement published Wednesday.

Financial institutions are encouraged to step up credit extensions to listed companies and major shareholders for share repurchases, and lenders are allowed to apply a reasonable markup over the 1% base line, according to the PBOC.

Banks have applied for relending quotas exceeding 200 billion yuan, equivalent to $29.98 billion, and the PBOC will ensure lenders have ample funding to support financing needs for stock buybacks, according to the statement.

Wednesday's announcement followed a key symposium convened Monday by China's top financial regulators that included the country's stock market watchdog. At the meeting, policymakers met with representatives from major banks, securities and fund companies to optimize capital market support.

Write to Singapore Editors at singaporeeditors@dowjones.com

(END) Dow Jones Newswires

November 03, 2026 21:29 ET (02:29 GMT)