# China Central Bank Launches Bond Market Swap Facility

> China's central bank creates bond market swap facility to stabilize liquidity for financial institutions.
- Title: China Central Bank Launches Bond Market Swap Facility
- Summary: China's central bank creates bond market swap facility to stabilize liquidity for financial institutions. China's central bank established the Bond Market…
- Keywords: china, central bank, bond market, liquidity risk, asset managers, bond market swap facility, money, business, Central, Bank, Launches, Bond
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/bonds/chinas-central-bank-sets-up-non-bank-financial-institution-bond-market-swap-facility/articleshow/135210676.cms
- Author: Reuters
- Published: 2026-10-26T11:30:00+00:00
- Read time: 1 min
- Topics: china, central bank, bond market, liquidity risk, asset managers, bond market swap facility, money, business
## China's central bank sets up bond market swap facility
China's central bank said on Monday it would establish the Bond Market NBFI Swap Facility to maintain bond market stability.
## Facility supports asset managers during liquidity risk
The facility will support bank wealth management subsidiaries and public fund managers in borrowing central bank bills to raise financing.
## Institutions use cash to buy bonds for redemptions
Institutions can use the cash to buy eligible bonds or units from mutual fund products facing redemptions then pledge those assets to the central bank.
## Key takeaway

China's central bank established the Bond Market NBFI Swap Facility to help asset managers and fund managers borrow central bank bills during liquidity crises.