(Yicai) Dec. 31 -- The People's Bank of China anticipates shortly carrying out its second securities, funds, and insurers' swap facility operation worth at least CNY50 billion (USD6.9 billion), expecting to add more participants to support capital market development.

The PBOC released a tender notice for the SFISF operation on its website today, beginning to accept applications from eligible companies on the same day. The swap period is one year, and the fee is determined through bidding.

Besides the previous 20 participants, the second operation is expected to add more securities and fund companies and five leading insurers, the central bank told Yicai. The PBOC conducted its first SFISF operation on Oct. 21, exchanging CNY50 billion of assets with 20 brokerages, fund companies, and insurers.

The PBOC launched the novel monetary policy tool to allow eligible securities, funds, and insurance companies to use their assets, including bonds, stock exchange-traded funds, and holdings in constituents of the CSI 300 Index, as collateral in exchange for highly liquid assets such as treasury bonds and central bank bills in an effort to funnel capital into stock markets.

Based on evaluation and compliance, the China Securities Regulatory Commission and the PBOC have doubled the pool of candidates to 40 entities, the CSRC noted in a statement today.

Since the first SFISF operation, institutional participants have actively carried out swap facility operations and completed financing and investments based on market conditions, the CSRC said. Over 90 percent of the first operation's CNY50 billion has been further allocated, and the tool has played a positive role in keeping the capital market running stably, it added.

Editors: Dou Shicong, Emmi Laine