Regulators and lenders called to Monday session
The People's Bank of China is expected to convene a meeting on Monday, Nov. 2, bringing together the National Financial Regulatory Administration, the China Securities Regulatory Commission and major banks. The agenda centers on the central bank's relending policy covering stock repurchases and increases in shareholdings, according to industry insiders who disclosed the plans. Those people indicated that the discussion would concentrate on ways to optimize the policy.[S1]
Coverage of the same event also reported that the PBOC and the CSRC would hold consecutive meetings centered on capital-market tools and on relending for buybacks and share increases.[S2]
Market-stabilization expectations and policy backdrop
Participants in the industry have speculated that the gathering amounts to preparation for additional measures aimed at steadying the market. The session unfolds against a wider debate about the monetary-policy instruments available to China's central bank. At an earlier meeting, a central bank committee urged that those tools be adjusted when appropriate so that liquidity stays ample, and called for strengthening the framework through which the country's monetary policy is operated.[S1]
