Global Market: China's securities regulator to meet market participants as state-backed investors step in to support stocks

China's securities regulator is set to meet market participants on Monday to discuss measures aimed at stabilising the country's equity markets after a sharp sell-off erased nearly 10 trillion yuan ($1.48 trillion) in market value over the past two weeks, according to official media. The move comes alongside fresh buying by state-backed investors to help arrest the decline in share prices.

According to a Reuters report, the China Securities Regulatory Commission (CSRC) has invited representatives from across the financial industry to discuss proposals that could support the stable and healthy development of the country's capital markets. The meeting is expected to gather feedback from key market participants on potential policy measures.

The report also stated that the CSRC will organise additional seminars with representatives from brokerage firms, fund management companies and listed firms over the coming days. The discussions are aimed at collecting industry feedback that could help shape future policies designed to restore market confidence.


Chinese equities came under intense pressure last week, with the market falling more than 5%. Investor sentiment weakened amid concerns that Chinese chipmaker CXMT's $8.6 billion initial public offering would tighten market liquidity, as per the report. At the same time, a global sell-off in semiconductor stocks and renewed geopolitical tensions in the Middle East further dampened risk appetite.

Technology shares bore the brunt of the decline, with Shanghai's STAR Market index dropping around 25% from its July 1 peak, reflecting heavy selling in growth-oriented stocks.

State-backed institutions have meanwhile stepped up efforts to support the market. China Reform Holdings Corp, a central government-owned investment company, announced it had invested 50 billion yuan in Chinese equities to help stabilise the market. The company also indicated that it plans to continue increasing its equity holdings as part of its long-term investment strategy.

In a separate development, China Chengtong Holdings Group disclosed it had purchased nearly 10 billion yuan worth of shares, reinforcing official efforts to cushion the market against further declines.

The coordinated response from regulators and state-backed investors highlights Beijing's increasing focus on restoring investor confidence after one of the sharpest market corrections in recent months, with authorities seeking industry input while deploying state capital to support equity prices.