China makes stock buyback relending permanent, cuts rate to 1 percent

China's central bank and financial regulators agreed on November 2 to convert the stock repurchase and shareholding increase relending facility into a long term arrangement and cut its rate to 1 percent from 1.25 percent.

Why it matters: The two capital market support tools, in place since October 2024, are being made cheaper and more permanent after the CSI 300's worst October since early 2016, putting a standing central bank backstop under share buybacks.

Data as of People's Bank of China release of November 2, 2026, read in full in the original Chinese in this run; the facility balances, the signed and disbursed relending totals, the permanence decision and the rate cut are the central bank's own. The CSI 300 October performance context is from Finimize reporting of Reuters. Developing item.

The People’s Bank of China, the National Financial Regulatory Administration and the China Securities Regulatory Commission met financial institutions on November 2 on the two tools created in October 2024 to support the capital market, and said the swap facility for securities, fund and insurance companies now carries a balance of 105 billion yuan after repeated rollovers, while stock repurchase and shareholding increase relending has signed about 440 billion yuan of loans with more than 280 billion yuan disbursed. The regulators said the repurchase relending policy will change from a phased arrangement into a long term institutional arrangement, with the relending rate cut to 1 percent from 1.25 percent, and that swap facility operations will be carried out in due course with more participating institutions, an appropriately lower swap fee rate and optimised collateral and operating arrangements.

China makes stock buyback relending permanent, cuts rate to 1 percent

Sources