The People’s Bank of China is set to meet financial regulators and major banks on Monday to discuss tools to support the stock market, according to Chinese media reports. The meeting comes after the CSI 300 posted a record 12th straight weekly decline. Some securities firms and funds were notified of the meeting.
What the talks will cover
The talks will study how to improve a relending programme that lets companies and major shareholders borrow from banks to buy their own shares. That programme is backed by central bank funding. There has been no official confirmation of the agenda or of any planned measures.
The CSI 300 entered a bear market in October, its worst month in more than a decade. The index fell 8.5 percent over the month.
Economic backdrop
Official PMIs released Saturday showed both manufacturing and non-manufacturing back in contraction in October. The manufacturing reading was 49.3 and the non-manufacturing reading was 49.7. Both sit below the 50 level that separates expansion from contraction.
The regulators involved include the National Financial Regulatory Administration and the China Securities Regulatory Commission.
