China's central bank, the People's Bank of China (PBOC), has announced plans to conduct its second operation of the Securities, Funds, and Insurance Companies Swap Facility (SFISF) to support the development of the country's capital market. The second operation, with a one-year term, is set to commence soon and aims to expand participation beyond the initial 20 participants from the first operation conducted in October. The PBOC expects to include more securities and fund companies, as well as five leading insurers, in this round, with a minimum value of 50 billion yuan (approximately USD6.9 billion). The SFISF allows eligible institutions to use their assets as collateral in exchange for highly liquid assets, facilitating capital flow into stock markets. This move follows a year where Chinese stocks ended a three-year losing streak, with the CSI 300 Index rising 15.9% and the Shanghai Composite Index gaining 13.9% in 2024.