China Stocks Rebound as Beijing Steps Up Market Support

The Shanghai Composite edged higher to around 3,609 on Wednesday, while the Shenzhen Component rose 0.6% to 10,942, rebounding from the previous session as Beijing expanded its share buyback and relending facilities. The PBoC reported that applications for its stock-purchase loan program topped 200 billion yuan ($30 billion), a swift response to a recent regulatory meeting aimed at streamlining buyback financing. These aggressive interventions underscore Beijing’s commitment to steadying equities amid soft consumer demand, sluggish broad economy, and a deep property downturn. On the economic front, a private survey showed that the Composite PMI edged down to a three-month low of 52 in October from 52.4 in September, with the Manufacturing PMI slightly easing to 52 from 52.1 and the Services PMI falling to a three-month low of 50.8 from 51.6. Gains were widespread across major tickers, led by WuXi AppTec (3.9%), NAURA Technology (2.5%), and Foxconn Industrial Internet (2%).