Three Ministries Hold Joint Meeting on Nov 2 to Discuss Optimizing Re-lending for Buybacks/Stake Increases and Capital Market Tools
nashnova research
The PBOC, CSRC, and NFRA are convening two meetings on the same day — one with brokerages and fund houses on capital-market tools, the other with banks on buyback relending. After A-shares' sharp October sell-off, the rare dual-track move signals urgency more than any single tool does.
What are the two meetings about?
Meeting one: the PBOC and CSRC gather brokerages and fund companies to push adoption of SFISF — a swap facility that lets qualified institutions pledge equities or bond ETFs to the central bank in exchange for highly liquid assets such as treasuries.
Meeting two: the PBOC, NFRA, and CSRC gather banks to refine the dedicated relending program for share buybacks. This means → the focus has shifted from "creating the tool" to "getting banks to actually lend."
Both meetings on the same day. In plain terms = regulators are sitting the buy side (brokerages, funds) and the sell side (banks) down at the same table to unblock both ends of the pipeline.
How much of these tools has actually been used?
SFISF has been tapped twice, totaling ¥105 billion — roughly one-fifth of its initial ¥500 billion quota.
Over 300 listed companies have disclosed plans to apply for buyback relending, with a combined ceiling above ¥60 billion — again about one-fifth of the initial ¥300 billion quota.
In May 2025 the PBOC merged the two quotas to ¥800 billion and cut the facility rate to 1.5%. This means → headroom is not the bottleneck; willingness to draw on it is.
How bad was October, and why call these meetings now?
The ChiNext index fell 23.02% in October; the STAR 50 fell 24.13%. Both are down more than 40% since July.
CSRC Chairman Wu Qing spoke twice in October — at an expert roundtable and the Financial Street Forum — pledging to "tackle multiple unexpected external risks head-on" and strengthen market-stabilization mechanisms.
The CSRC also fast-tracked the first batch of 18 actively managed ETFs, which went on sale Oct 23. By Oct 30, 15 had closed fundraising, pulling in ¥18 billion from over 160,000 investor accounts. This reflects regulators using approval tempo as a stabilization lever.
Where do valuations stand right now?
CICC chief A-share strategist Li Qiusuo notes the CSI 300 forward P/E fell to as low as 11.8×, below its ten-year average. The ChiNext forward P/E dropped to the 2.8th percentile of the past decade. In plain terms = by any historical yardstick, valuations have hit extreme cheapness.
But he stresses that "cheap" does not automatically turn into buying — investors need rapid, concrete policy action to shift expectations before they move.
A-share listed companies posted revenue and earnings growth above nominal GDP growth in the first three quarters; non-financial earnings remain solid. This means → fundamentals have not deteriorated — the drawdown is driven by capital flows and sentiment.
Tech stocks fell the hardest — has the long-term thesis changed?
CSC macro chief Zhou Junzhi argues that high-flying tech-growth names corrected more sharply because they had run up the most — but "short-term price adjustment does not mean a long-term trend reversal."
She outlines three pillars of medium-to-long-term support: tech-industry upgrading on the earnings side, household asset reallocation on the domestic-capital side, and RMB internationalization on the foreign-capital side.
Whether the Nov 2 dual-track meetings lead to broader and larger deployment of the tools is the key near-term signpost for market confidence. Put simply = the tools exist; the market now needs to see "how much, for whom, and how fast."
市场有风险，内容仅供研究参考，不构成投资建议。