Chinese stocks rise on reports of regulator market support meeting
The CSI 300 Index gained 1.3 per cent as authorities prepare to meet with banks and securities firms to discuss market support.
Chinese stocks advanced after reports that financial regulators will meet with banks and securities firms on Monday to discuss measures to support the capital market, according to Mint.
The CSI 300 Index rose as much as 1.3 per cent, rebounding from a 2.9 per cent drop last week. The tech-heavy Star 50 Index increased by more than 3 per cent.
Chinese media Cailian reported on Sunday that the People’s Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission will meet with major banks to study optimising lending programs for stock buybacks.
The 21st Century Business Herald reported that certain funds and securities firms received notices for a Monday morning meeting with the PBOC and CSRC.
Another Cailian report stated a major state-owned bank intends to expand a lending quota by as much as 200 billion yuan to two state asset management firms, known as the National Team, to assist with stock purchases.
Shen Meng, director at Beijing-based investment bank Chanson & Co, said the meeting would likely have a positive short-term impact but noted that policy signals alone cannot change the underlying economic trajectory.
