The ongoing conflict around the world has left the global equity markets in shambles. Every country is doing something to bring back the losses, or at the very least stop further decline. In a foray of moves, comes a defining move by the Chinese government which is planning to pour in 100 billion yuan or $15 billion for the at least a calender year. On November 2, 2026, the People’s Bank of China (PBOC), the country’s central bank, announced a fresh round of its securities, funds and insurance companies swap facility. As per the agreement, financial institutions like securities firms and fund managers may hold assets that are difficult to sell quickly, called illiquid assets. The motive here is to provide a selling space and to ensure that the demand for Chinese shares still remains strong.
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The government is doing something else as well. It is allowing companies to buy back their shares by lowering the taxes. The PBOC has cut the interest rate on its relending facility for share buybacks and increases in major shareholders’ stakes from 1.25% to 1%. This will help the market in two ways. First, its a straight-up win for the companies. Next, it will create demand for the shares as companies will buy back the shares that investors dump in the market.
However, industry experts believe that its highly unlikely that this process will result in the bounce back of the market. That being said, the experts did concur that the process, in all probability, will stop any further decline.
