China regulators to meet banks and firms to support stock market
Financial authorities will discuss measures to halt the slump in Chinese stocks during meetings scheduled for Monday.
China’s three major financial regulators will meet with banks and securities firms on Monday to discuss ways to support the capital market, according to a report by Mint on Sunday.
The People’s Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission will study ways to optimise lending programmes to assist stock buybacks, Cailian reported.
A major state-owned bank intends to expand a lending quota by as much as 200 billion yuan for two state asset management firms, also known as the National Team, to aid stock purchases, Cailian further reported.
The CSI 300 Index entered a bear market in October, recording an 8.5 per cent fall and dropping for 12 consecutive weeks.
Shen Meng, director at Beijing-based investment bank Chanson & Co, said the meeting might positively impact the market in the short term, but noted that policy signals alone cannot change the economic trajectory.
The market downturn occurs as China's official manufacturing and non-manufacturing purchasing managers' indexes returned to contraction in October.
