China Stocks Rise on Report of Regulator Market Support Meeting
Chinese stocks advanced following a report that financial regulators will meet with banks and securities firms Monday to discuss measures to support the capital market, signaling authorities’ renewed effort to halt a slump.
The CSI 300 Index rose as much as 1.3%, rebounding from last week’s 2.9% drop. The tech-heavy Star 50 Index was up more than 3%.
All three major Chinese financial regulators, including the People’s Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission, will hold meetings with major banks to study optimizing lending programs to support stock buybacks, Chinese media Cailian reported on Sunday. Certain securities firms and funds have received notices for a meeting with the PBOC and CSRC on Monday morning, the 21st Century Business Herald reported.
A major state-owned bank also plans to increase a lending quota by up to 200 billion yuan to two state asset management firms — part of the so-called “National Team” — to support stock purchases, according to another Cailian report. A number of exchange-traded funds known to be favored by state-linked investors saw record inflows in October.
These efforts would add to steps taken by China last month to stabilize its equity market. But those measures have so far proved insufficient against the backdrop of a weak domestic economy and doubts over AI earnings, with Chinese stocks suffering their worst month in more than a decade.
The CSI 300 benchmark tumbled into a bear market in October, falling 8.5% and dropping for a record 12 straight weeks.
“The meeting will have a positive impact on the market in the short term, but policy signals like this cannot change the underlying economic trajectory on their own,” said Shen Meng, director at Beijing-based investment bank Chanson & Co. “A sustained improvement in the medium- to long-term outlook would still require structural reforms and supportive fiscal or industrial policies.”
It remains unclear how much of the funds in the latest quota will be deployed to immediately buy Chinese stocks, though they are a clear signal that regulators are trying to pump fresh liquidity into the market. Still, the quota to the state-owned asset managers would exceed the 180 billion yuan initially allocated to China Reform Holdings Corp. Ltd. and China Chengtong Holdings Group Ltd. when they first joined the program.
The market downturn has coincided with fresh signs of economic strain. China’s official manufacturing and non-manufacturing purchasing managers’ indexes fell back into contraction in October.
In September 2024, the PBOC unveiled two new liquidity tools to support China’s stock market. The first is a swap facility allowing securities firms, fund managers and insurers to exchange eligible assets for highly liquid central bank assets, giving them more capacity to buy equities. The second is a relending facility that provides low-cost funding to banks to finance share buybacks and stake increases by listed companies and major shareholders.
With assistance from Ailing Tan, Jing Jin and Ken Wang.
©2026 Bloomberg L.P.
This article was generated from an automated news agency feed without modifications to text.
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