Chinese Stocks Rise As PBOC Reinforces Market Support

Chinese stocks advanced on Friday following a series of positive announcements from the central bank, reinforcing its commitment to support the market, Bloomberg News reported.

The CSI 300 Index gained as much as 3.7%, rebounding from a three-day loss, with chip shares leading the performance.

The CSI 300 Index gained as much as 3.7%, rebounding from a three-day loss, with chip shares leading the performance.

A measure of Chinese stocks listed in Hong Kong also rose by over 3%. The People’s Bank of China (PBOC) launched a specialized re-lending facility to help companies buy back shares, as well as a swap facility to provide institutional investors with liquidity to purchase stocks.

Both programs were introduced at the central bank’s significant briefing in late September.

Additional support came from President Xi Jinping’s comments emphasizing the importance of science and technology in advancing Chinese modernization. These developments provided much-needed relief for investors, who have been calling for more policy support after the market rally lost momentum.

Fresh data released Friday showed that authorities need to accelerate stimulus measures to meet the annual growth target, as economic expansion slowed in the third quarter.