People's Bank of China's Stock Market Stimulus Plan Implemented...China Stock Price Around 4% ↑

Chinese stocks rallied following the implementation of liquidity supply measures by the People's Bank of China, the central bank of China.

The Shanghai Composite Index rose 2.91% to 3,261.56 points today, and the Shenzhen Composite Index also rose 4.09% to 1,906.86.

The CSI 300 index, which consists of the top 300 stocks in the Shanghai and Shenzhen stock markets, also closed 3.62%.

Earlier, Xinhua said the People's Bank launched a "SFISF" today to supply liquidity in the stock market, with the first application exceeding 38 trillion won (200 billion yuan).

Twenty securities and fund operators participated in the system that allowed financial institutions to exchange high-quality assets such as government bonds and bills of the People's Bank with CSI 300-incorporated stocks and other assets as collateral.

The People's Bank also launched a 57 trillion won (300 billion yuan) "special re-loan" that guides commercial banks to offer loans to publicly traded companies and major shareholders to buy back their shares or expand their equity.