China's central bank announced on Wednesday stepped-up efforts to implement its relending facility for share buyback and shareholding increase, including lowering the facility's interest rate and ensuring sufficient funding, in a move to maintain stock market stability.

The People's Bank of China said it has lowered the interest rate by 25 basis points to 1 percent, effective on Wednesday.

The facility covers 21 nationwide banks and five systemically important city commercial banks, with a support ratio of 100 percent and a one-year term that can be extended according to banks' needs.

Banks are allowed to set lending rates at an appropriate margin above the relending rate and reasonably determine loan terms to accelerate lending and enhance the market value management capabilities of listed companies and major shareholders, the PBOC said.

The central bank pledged to fully meet the demands of the banks for relending funds, noting that banks have submitted applications for more than 200 billion yuan ($30 billion) in relending quotas following a meeting on Monday.

source: chinadaily.com.cn

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