China Stock Market Stabilisation Talks Target RMB300bn Lending Facility

China stock market stabilisation measures are expected to be discussed by the country's central bank, financial regulators and major financial institutions following a sharp decline in mainland equities during October.

According to mainland media reports, the People's Bank of China, National Financial Regulatory Administration and China Securities Regulatory Commission plan to examine ways to strengthen an existing RMB300bn (USD45bn) lending facility.

The programme allows banks to provide financing for share buy-backs and increases in equity holdings by listed companies and major shareholders.

The discussions follow significant market losses, with the CSI 300 Index falling 8.5% in October, its steepest monthly decline in more than a decade.

The Shanghai Composite Index also declined 6.3% during the month.

Regulators are seeking to improve the effectiveness of financial support mechanisms and restore investor confidence.

For institutional investors and family offices with Chinese equity exposure, the proposed measures could influence market liquidity, corporate share repurchases and near-term investment sentiment.