Business · Markets · 2 hrs ago
China cuts rate on loans for stock buybacks to 1%
China’s central bank cut the rate on loans used to finance stock buybacks and share purchases, effective November 4.
The measure is intended to help keep the capital market stable.
The loans are available through 21 national banks and five systemically important city commercial banks, with the central bank covering the full loan amount.
They run for one year and can be extended if banks need more time.
After a November 2 meeting, banks had applied for more than 200 billion yuan in funding.
The central bank said it would meet banks’ funding needs and support lending to listed companies and their major shareholders.
China’s central bank cut the interest rate on relending for stock buybacks and share purchases to 1% from 1%.
The 0.25-percentage-point reduction took effect on November 4, 2026.
The program supports 21 nationwide banks and five systemically important city commercial banks.
The People’s Bank of China said the policy is intended to help maintain stable capital markets.
Banks had applied for more than 200 billion yuan in relending quotas by November 4.
- Who
- The People’s Bank of China announced the change, which supports 21 nationwide banks and five systemically important city commercial banks.
- What
- It cut the relending rate for stock buybacks and share purchases by 0.25 percentage points to 1%.
- When
- The cut took effect on November 4, 2026.
- Where
- China.
- Why
- The central bank said the policy aims to maintain stable capital markets and support listed companies and major shareholders with market-value management.
This story does not have two clearly opposing sides.
A meeting on relending for stock buybacks and share purchases was held, after which banks submitted quota applications.
The rate cut to 1% took effect.
- Rate cut
- 0.25 percentage points, to 1%
- Effective date
- November 4, 2026
- Supported institutions
- 21 nationwide banks and five systemically important city commercial banks
- Relending support
- 100% of eligible loans; one-year term, extendable if banks need
- Quota applications
- More than 200 billion yuan received from banks by November 4
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What people are saying
To maintain the stable operation of the capital market