China's central bank and its securities regulator will hold a meeting on Monday to discuss the use of tools designed to support the country's capital market, according to local media. The People's Bank of China will meet with the National Financial Regulatory Administration, China Securities Regulatory Commission and major banks to study how to improve a relending program for share buybacks and stake increases, Cailian reported on Sunday, citing people in the industry.
Some securities firms and funds have received notices about Monday's meeting, according to 21st Century Business Herald. It said industry participants were speculating the meeting was likely intended as preparation by financial regulators for further action to stabilize the market. A state-backed effort 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.
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.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing