China to create new monetary policy tools to support stock market: official

BEIJING, Sept. 24 (Xinhua) -- The Chinese central bank will create new monetary policy tools to support the stable development of the stock market, the central bank governor said Tuesday.

The central bank will establish a swap program for securities, funds and insurance companies to obtain liquidity from the central bank through asset collateralization, Pan Gongsheng, governor of the People's Bank of China, told a press conference.

The program will significantly enhance the companies' ability to acquire funds and increase their stock holdings, Pan said.

The central bank will also create a special re-lending facility to guide banks to provide loans to listed companies and their major shareholders for buybacks and increasing shareholdings, Pan said.