Beijing is deploying financial support after its worst monthly stock-market decline in more than a decade. The intervention may stabilize prices. Restoring confidence is another matter.
China is moving to stabilize its stock market after the benchmark CSI 300 index fell 8.5% in October, its worst monthly performance in more than a decade.
The People's Bank of China has activated additional liquidity support for financial institutions and made a lending program supporting corporate share buybacks permanent.
The central bank also lowered the program's lending rate to 1%.
On November 3, it conducted a 100 billion yuan ($14.9 billion) swap operation, allowing financial institutions to exchange eligible assets for more liquid securities.
Meanwhile, Chinese regulators have reportedly instructed investment banks to pause initial public offerings and large share sales until market conditions improve.
The measures helped support a rebound on November 4.
