Beijing adds stock market support after October sell-off
China's central bank and regulators have added liquidity and buy-back support after the CSI 300's worst October in a decade. Stocks extended a rebound on Thursday, though investors remain cautious.
IllustrationThe story so far
On November 1, reports said China's central bank and regulators would meet with banks, securities firms and fund managers to discuss tools for supporting stocks after a sharp October decline. The CSI 300 had fallen 8.5 per cent in October, its biggest monthly drop in more than a decade. The talks were expected to focus on a relending facility for share buy-backs and stake increases by listed companies and major shareholders.
On Monday, the People's Bank of China said it would start a one year swap facility allowing institutional investors to exchange illiquid assets for liquid ones to buy stocks. Thirty one institutions had applied for 100 billion yuan, or $15.04 billion. The CSI 300 rose, closing up 0.8 per cent, while the Star 50 rose 3.1 per cent. Vice-Premier He Lifeng later said Beijing would add measures to bolster Hong Kong as a financial centre.
By Tuesday, major A-share indexes extended losses, and the PBOC governor pledged further support. The Shanghai Composite fell 0.8 per cent to 3,608.10. Investors stayed cautious, with leveraged traders trimming holdings to a one-year low and new stock-account openings falling more than 30 per cent in October. On Thursday, the CSI 300 rose 0.4 per cent to 4,115.93 at the trading break, extending a rebound as state support and U.S. midterm results lifted risk appetite.
Latest updates
8 updates · newest first- 5 NovNew development
China stocks extend rebound on state support and US midterm results
Chinese stocks extended their rebound for a second day Thursday, with the CSI 300 Index rising 0.4% to 4,115.93 at the trading break. State support and a Democratic landslide in the U.S. congressional election lifted risk appetite, while the chip heavy Star 50 gauge jumped 2.1%. Regulators restarted a swap facility and cut the rate on a relending programme for equity buybacks to inject liquidity.
South China Morning Post ↗
- 4 NovNew development
Chinese investors stay cautious as state support for stocks grows
Chinese investors stayed on the sidelines this week as Beijing added measures to support stocks. Leveraged traders trimmed holdings to a one-year low and new stock-account openings fell more than 30% in October. The central bank offered 100 billion yuan of liquidity support and reported over 200 billion yuan in buy-back quota applications. Banks said state intervention may steady sentiment but not fuel a rally without earnings gains.
- 3 NovNew development
PBOC pledges support as China stocks slide
China's central bank governor pledged further support for the stock market after major A-share indexes extended losses on Tuesday. The PBOC had launched a swap facility for institutional investors and cut the rate on a share buy-back relending programme. The Shanghai Composite fell 0.8% to 3,608.10, while the CSI 300 had its worst October in a decade.
- 3 NovOfficial statement
Vice-Premier He Lifeng vows support for Hong Kong financial centre
China's Vice-Premier He Lifeng said Beijing will introduce extra measures, as needed, to bolster Hong Kong as an international financial centre. Speaking at the 2026 Global Financial Leaders' Investment Summit, he called finance the top priority for the city and urged expansion of financial services and innovation in commodities, fintech and green finance, as China seeks to stabilise its stock markets.
- 2 NovNew development
PBOC to start $15.04bn asset swap to support China stocks
The People's Bank of China said on Monday it would start a one year swap facility letting institutional investors exchange illiquid assets for liquid ones to buy stocks. 31 institutions have applied for 100 billion yuan, or $15.04 billion, after the Chinese share market's worst decline in almost a decade. The CSI 300 rose on speculation about state support.
- 2 NovNew development
China stocks rise on report of support talks after record sell-off
Chinese stocks rose after a report that financial regulators were set to discuss support measures with industry participants following a record 12-week sell-off. The CSI 300 closed up 0.8%, while Shanghai's Star 50 rose 3.1%, the most since mid-September. Sinolink Securities and Pacific Securities rose by the 10% daily limit, and Hong Kong stocks gained 0.4%.
- 2 NovNew development
China stocks rebound as Beijing support speculation grows
China's CSI 300 Index rose 0.3% to 3,997.76 on Monday, rebounding from October's 8.5% fall that put it in a bear market. Speculation grew that Beijing would expand a 300 billion yuan relending facility for share buybacks, with the central bank set to meet regulators to improve the programme. State buyers may have bought at least 170 billion yuan of ETFs in October, while the Nasdaq 100's 3.5% Friday drop may complicate efforts.
- 1 NovNew development
China banks and regulators to meet Monday on stock support
China's central bank and regulators are expected to meet with banks, securities firms and fund managers on Monday to discuss tools to support the stock market after a sharp October decline. The meeting will focus on a relending facility for share buy-backs and stake increases by listed companies and major shareholders. The CSI 300 fell 8.5 per cent in October, its biggest monthly drop in more than a decade.