Business · Markets · 8 hrs ago
China Turns to Market Supports as Stocks Suffer Sharp Declines
China is reviving measures to support its stock market after a sharp selloff, two years after its last major rescue.
In October, the market had its worst monthly decline in more than a decade, and the CSI 300 fell into a bear market from its June peak.
Authorities are offering funding for buybacks and investors and have told some institutions not to sell.
Hedge fund founder Hong Liang has blamed insurers for buying technology shares near their July peak and cutting positions in late September, though this remains an accusation.
Insurers may have added to the selling as they manage losses and meet claims, even after policymakers urged them to provide long-term investment to the market.
Their ability to hold shares through downturns is limited, unlike the government-backed “national team,” whose role is to stabilize markets.
China’s five major listed insurers reported sharply lower third-quarter profits, and authorities have told several major insurers to report holdings and avoid cutting losses.
China is reviving market-support measures as its stock market suffers a sharp decline.
The People’s Bank of China is offering low-cost funding for corporate share buybacks and liquidity for institutional investors.
Authorities have also issued guidance to major insurers to report equity holdings and refrain from cutting losses.
China’s market fell sharply in October, while the CSI 300 entered a bear market from its late-June peak.
The article says insurers may be selling shares to manage risk and liabilities, despite policymakers’ efforts to encourage them to provide long-term capital.
- Who
- China’s authorities and the People’s Bank of China are supporting the market. Insurers are among the investors facing scrutiny over share sales.
- What
- Authorities are deploying market-support measures as Chinese stocks decline.
- When
- The sharp decline was reported in October; the article was published on November 4, 2026.
- Where
- China’s stock market.
- Why
- Authorities are seeking to contain the market rout. The article says insurers may be selling to manage risk and meet liabilities.
This story does not have two clearly opposing sides.
The head of China’s securities regulator reiterated that insurers should provide more long-term capital to the stock market.
The CSI 300 began its decline from a peak that later left it in a bear market.
Hong Liang said insurers had cut positions after buying technology stocks near their July peak.
China’s stock market recorded its worst monthly decline in more than a decade.
Authorities issued guidance to several major insurers on reporting holdings and refraining from cutting losses.
- CSI 300
- Entered a bear market from its late-June peak
- Star 50
- Fell as much as 48%
- October market decline
- Worst monthly decline in more than a decade
- China Life equity allocation
- 19.2% at the end of June, up from 16.9% in 2025
- China’s five major listed insurers
- Profits plunged in the third quarter, largely because of the decline in domestic stocks
What people are saying
truly baffling
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