BEIJING: Chinese regulators have rolled out a handful of measures, from conducting swap operations to upgrading a lending facility for stock buybacks by listed companies, as part of efforts to stabilise struggling capital markets.
Authorities also prodded index heavyweights and leading tech firms to try to stabilise their share prices, and are studying plans to ease margin rules to increase market liquidity.
China's central bank and securities watchdog made their announcements on Monday (Nov 2) after the benchmark CSI300 Index slumped 8.5 per cent in October, its worst month since early 2016.
Persistent weakness in the world's second-largest economy, reeling from sluggish consumption and a prolonged property sector debt crisis, and sharp falls in tech stocks have hit investor confidence.
Guess WordCrack the word, one row at a timeBuzzwordCreate words using the given lettersMini SudokuTiny puzzle, mighty brain teaserMini CrosswordSmall grid, big challengeWord SearchSpot as many words as you can Show More Show LessLocal media first reported that regulators had met with financial institutions on Monday to discuss tools to support capital markets. Share prices regained ground on Monday in expectation of supportive policies.
As part of the measures, the People's Bank of China (PBOC) said on Monday it would conduct swap operations with financial institutions on Tuesday that could inject more than 100 billion yuan (US$15 billion) into the stock market.
It will be the third time the PBOC has used the liquidity tool, created two years ago to allow brokers, insurers and fund companies to obtain liquidity for stock purchases.