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The extended capacity of the central bank to finance listed companies' share buybacks and shareholding increases via a lending facility will help to stabilize the stock market and facilitate companies' high-quality development, said experts. Their comments were in response to a statement released on Sunday by the People's Bank of China, the country's central bank, saying that the lending facility for share buybacks and shareholding increases introduced three months ago should be better used to stabilize the capital market. The decision was reached during a recent symposium jointly held by the PBOC and the China Securities Regulatory Commission, the country's top securities watchdog. The central bank tool was implemented on Oct 18, providing a total of 300 billion yuan ($41 billion) of loans to 21 commercial banks for one year at an interest rate of 1.75 percent. These loans are used to fund share buybacks of listed companies or major shareholders. Banks can decide if they should issue
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