China’s financial regulators will hold a meeting with banks and securities firms Monday to discuss measures to support the capital market, signaling authorities’ renewed effort to halt the slump in Chinese stocks.
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.
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 Index tumbled into a bear market in October, falling 8.5% and dropping for a record 12 straight weeks.