China’s central bank boosted support for markets on Thursday as it launched a “swap facility” offering firms access to $70.6 billion in liquidity as Beijing seeks to raise confidence in the country’s flagging economy.

The programme will allow “qualified… companies to exchange bonds, stock ETFs, CSI 300 constituent stocks and other assets with the People’s Bank of China for high-grade liquid assets such as treasury bonds and central bank bills”, the bank said.

“The scale of the first phase of the operation is 500 billion yuan and can be further expanded depending on the situation,” it added.

“Starting today, applications from qualified securities, funds and insurance companies will be accepted.”

Announcing the plans last month, People’s Bank of China chief Pan Gongsheng said the move would “significantly enhance” firms’ ability to access funds to buy stocks.

The world’s second-largest economy has struggled to regain its footing since the lifting of pandemic measures at the end of 2022.

It faces multiple issues including a prolonged debt crisis in the property sector, chronically low consumption and high unemployment among young people.

In response, Beijing last month unveiled its most aggressive stimulus package in years.

The PBoC slashed interest on one-year loans to financial institutions, cut the amount of cash lenders must keep on hand and pushed to lower rates on existing mortgages.

Several major cities — including Shanghai, Guangzhou and Shenzhen — have also further eased restrictions on buying homes, and top officials including Premier Li Qiang have called for more effective implementation of the slate of measures.

The announcements triggered a blistering rally on stock markets on the mainland and in Hong Kong.

However, investor sentiment cooled after a news conference Tuesday by the country’s top economic planning agency that failed to unveil any more stimulus or provide details on the measures already announced.

Zheng Shanjie, head of the National Development and Reform Commission, said only that Beijing was “fully confident in achieving the goals of economic and societal development for the year”.

He added that “we are also fully confident in maintaining stable, healthy and sustainable development”.

Analysts have warned that more direct state support is needed to boost consumption and achieve the government’s official national growth target of about five percent for this year.

More may be in the offing on Saturday, when finance minister Lan Fo’an is set to hold a briefing on fiscal policy in Beijing.

Authorities said Wednesday that Lan will outline “countercyclical adjustment of fiscal policy to promote high-quality economic development”.