Further Supportive Measures Flagged By BBG Sources

BBG sources note that “China is said to expand a short selling stock ban to insurers.” This looks like the latest leg of support from policymakers/regulators after yesterday’s State Council meeting called for forceful steps re: supporting the market.

• This headline comes after an earlier BBG sources piece suggested that “Chinese authorities are considering a package of measures to stabilize the slumping stock market, after earlier attempts to restore investor confidence fell short.”
• The piece went on to suggest that China is looking to mobilise ~CNY2tn as part of the efforts, with those funds set to come mainly via offshore accounts of Chinese SOEs, meaning the bulk of the purchases would come via the HK-China Stock Connect links. The sources suggested that at least CNY300bn of onshore funds had also been earmarked for deployment.
• The Hang Seng has seen a more meaningful rally on the back of today's news, adding 3.3%, while the CSI 300 has added 0.6%.