Title context: A Responsible Person from Relevant Departments of the CSRC Answers Questions from Reporters on Recent Work Related to Stabilizing the Market and Stabilizing Expectations Text: A responsible person from relevant departments of the CSRC answered questions from reporters on recent work related to stabilizing the market and stabilizing expectations.

A Responsible Person from Relevant Departments of the CSRC Answers Questions from Reporters on Recent Work Related to Stabilizing the Market and Stabilizing Expectations The following is the original text: A responsible person from relevant departments of the CSRC answered questions from reporters on recent work related to stabilizing the market and stabilizing expectations. I. Today, the financial management departments held a symposium to make arrangements for making good use of the two structural monetary policy tools. What are the CSRC's considerations for follow-up work? In September 2024, the People's Bank of China, together with the CSRC and the National Financial Regulatory Administration, launched two new monetary policy tools: the securities, fund, and insurance companies swap facility and the special relending facility for stock repurchases and increased holdings. Over the past two years and more, market entities such as securities companies, fund management companies, and listed companies have responded positively, and the two tools have operated well. As of the end of October this year, two batches of swap facility operations have been carried out, with 28 securities companies and fund management companies participating, totaling RMB105 billion. Across the market, 902 listed companies have disclosed 1,110 announcements for repurchase and increased-holding loans. Including the increased-holding loans applied for by the two state-owned capital operating companies, China Reform Holdings and China Chengtong, the upper limit of loan amounts applied for has cumulatively reached approximately RMB440 billion. The establishment and implementation of the two monetary policy tools have played an important role in introducing incremental market funds, revitalizing institutional stock assets, and promoting the improvement of the market's internal stabilization mechanism. Today, the People's Bank of China announced that it will carry out the third batch of swap facility operations for securities, fund, and insurance companies, and that the policy for relending for stock repurchases and increased holdings will shift from a phased arrangement to a long-term institutional arrangement, with the relending rate lowered to 1%. We will work with the People's Bank of China to organize relevant market entities to make good use of these two tools and jointly play a supportive role in stabilizing the market. First, expand the scope of participating institutions and the funding amount for swap facility operations. Upon application by relevant institutions, the CSRC, after consultation with the People's Bank of China, has agreed that 31 securities companies and fund management companies may carry out the third batch of swap facility operations, with applied amounts exceeding RMB100 billion, and operations will begin in the coming days. The CSRC will continue to urge securities companies and fund management companies to strengthen compliance and risk control management, fully leverage their professional investment capabilities, and better stabilize the capital market. Second, increase the coverage of the special relending facility for listed company stock repurchases and increased holdings. The CSRC will guide the rollout of more landmark cases with strong market influence, such as weighted index companies and leading technology stocks. At the same time, it will urge listed companies that have disclosed repurchase and increased-holding loan plans to accelerate implementation progress, and companies that have already applied for loans to step up repurchase implementation, sustaining the current good momentum of loan-supported repurchases and increased holdings and actively contributing to capital market stability. II. Under the call and promotion of regulatory authorities, many listed companies have actively carried out share repurchases in recent years. What is the overall implementation situation of listed company repurchases? What are the next considerations for supporting listed company share repurchases and optimizing repurchase rules? Carrying out share repurchases is an important tool for listed companies in market value management, and also an important way for listed companies to stabilize their own stock prices and demonstrate and convey development prospects and confidence. In December 2023, the CSRC revised the Rules for Share Repurchases by Listed Companies, improving the convenience of share repurchases and perfecting normalized institutional arrangements for listed company share repurchases, with the scale and number of repurchases generally trending upward. From 2024 to the first 10 months of 2026, the enthusiasm of listed companies for share repurchases steadily increased, and the cumulative disclosed repurchase plan amounts and actual implementation amounts in the Shanghai and Shenzhen markets both increased by 50% compared with the previous three years (2021-2023). In the first 10 months of this year, 645 listed companies in the Shanghai and Shenzhen markets disclosed 700 share repurchase plans worth RMB237.7 billion, of which RMB115 billion was for repurchase cancellation, accounting for nearly 50%; 747 companies actually implemented repurchases worth RMB134.5 billion. The repurchase plan amount, actual repurchase amount, repurchase cancellation amount, and its proportion all hit historical highs. To further improve the convenience for listed companies to carry out share repurchases and give play to the market's internal market-stabilizing function, after extensive and in-depth research, the CSRC recently plans to make the following adjustments and optimizations to share repurchases necessary to safeguard company value and shareholder rights and interests (referred to as market-support repurchases): First, add stock price "breaking below issue price" as one of the circumstances under which market-support repurchases may be carried out, provide that market-support repurchases are not subject to the restriction that "the company's shares have been listed for six full months," and cancel the restriction in market-support repurchases that no orders may be submitted during the opening and closing call auction periods. Second, require listed companies listed for less than 36 months, when their stock prices trigger circumstances for market-support repurchases, to strictly and earnestly fulfill the stock price stabilization measures in their listing commitments. Third, require listed companies with excess raised funds to promptly implement repurchases when they trigger circumstances for market-support repurchases. Fourth, require listed companies to specify in their annual cash dividend plans a certain proportion of funds to be included in a special repurchase fund, require listed companies with excess raised funds to include a certain proportion of excess raised funds in the special repurchase fund to be used exclusively for share repurchase cancellation, and require listed companies to include gains from selling market-support repurchase shares through centralized bidding into the special repurchase fund. The original text is as follows: A Responsible Person from Relevant Departments of the CSRC Answers Questions from Reporters on Recent Work Related to Stabilizing the Market and Stabilizing Expectations I. Today, the financial management departments held a symposium to make arrangements for making good use of the two structural monetary policy tools. What are the CSRC's considerations for follow-up work? In September 2024, the People's Bank of China, together with the CSRC and the National Financial Regulatory Administration, launched two new monetary policy tools: the securities, fund, and insurance companies swap facility and the special relending facility for stock repurchases and increased holdings. Over the past two years and more, market entities such as securities companies, fund management companies, and listed companies have responded positively, and the two tools have operated well. As of the end of October this year, two batches of swap facility operations have been carried out, with 28 securities companies and fund management companies participating, totaling RMB105 billion. Across the market, 902 listed companies have disclosed 1,110 announcements for repurchase and increased-holding loans. Including the increased-holding loans applied for by the two state-owned capital operating companies, China Reform Holdings and China Chengtong, the upper limit of loan amounts applied for has cumulatively reached approximately RMB440 billion. The establishment and implementation of the two monetary policy tools have played an important role in introducing incremental market funds, revitalizing institutional stock assets, and promoting the improvement of the market's internal stabilization mechanism. Today, the People's Bank of China announced that it will carry out the third batch of swap facility operations for securities, fund, and insurance companies, and that the policy for relending for stock repurchases and increased holdings will shift from a phased arrangement to a long-term institutional arrangement, with the relending rate lowered to 1%. We will work with the People's Bank of China to organize relevant market entities to make good use of these two tools and jointly play a supportive role in stabilizing the market. First, expand the scope of participating institutions and the funding amount for swap facility operations. Upon application by relevant institutions, the CSRC, after consultation with the People's Bank of China, has agreed that 31 securities companies and fund management companies may carry out the third batch of swap facility operations, with applied amounts exceeding RMB100 billion, and operations will begin in the coming days. The CSRC will continue to urge securities companies and fund management companies to strengthen compliance and risk control management, fully leverage their professional investment capabilities, and better stabilize the capital market. Second, increase the coverage of the special relending facility for listed company stock repurchases and increased holdings. The CSRC will guide the rollout of more landmark cases with strong market influence, such as weighted index companies and leading technology stocks. At the same time, it will urge listed companies that have disclosed repurchase and increased-holding loan plans to accelerate implementation progress, and companies that have already applied for loans to step up repurchase implementation, sustaining the current good momentum of loan-supported repurchases and increased holdings and actively contributing to capital market stability. II. Under the call and promotion of regulatory authorities, many listed companies have actively carried out share repurchases in recent years. What is the overall implementation situation of listed company repurchases? What are the next considerations for supporting listed company share repurchases and optimizing repurchase rules? Carrying out share repurchases is an important tool for listed companies in market value management, and also an important way for listed companies to stabilize their own stock prices and demonstrate and convey development prospects and confidence. In December 2023, the CSRC revised the Rules for Share Repurchases by Listed Companies, improving the convenience of share repurchases and perfecting normalized institutional arrangements for listed company share repurchases, with the scale and number of repurchases generally trending upward. From 2024 to the first 10 months of 2026, the enthusiasm of listed companies for share repurchases steadily increased, and the cumulative disclosed repurchase plan amounts and actual implementation amounts in the Shanghai and Shenzhen markets both increased by 50% compared with the previous three years (2021-2023). In the first 10 months of this year, 645 listed companies in the Shanghai and Shenzhen markets disclosed 700 share repurchase plans worth RMB237.7 billion, of which RMB115 billion was for repurchase cancellation, accounting for nearly 50%; 747 companies actually implemented repurchases worth RMB134.5 billion. The repurchase plan amount, actual repurchase amount, repurchase cancellation amount, and its proportion all hit historical highs. To further improve the convenience for listed companies to carry out share repurchases and give play to the market's internal market-stabilizing function, after extensive and in-depth research, the CSRC recently plans to make the following adjustments and optimizations to share repurchases necessary to safeguard company value and shareholder rights and interests (referred to as market-support repurchases): First, add stock price "breaking below issue price" as one of the circumstances under which market-support repurchases may be carried out, provide that market-support repurchases are not subject to the restriction that "the company's shares have been listed for six full months," and cancel the restriction in market-support repurchases that no orders may be submitted during the opening and closing call auction periods. Second, require listed companies listed for less than 36 months, when their stock prices trigger circumstances for market-support repurchases, to strictly and earnestly fulfill the stock price stabilization measures in their listing commitments. Third, require listed companies with excess raised funds to promptly implement repurchases when they trigger circumstances for market-support repurchases. Fourth, require listed companies to specify in their annual cash dividend plans a certain proportion of funds to be included in a special repurchase fund, require listed companies with excess raised funds to include a certain proportion of excess raised funds in the special repurchase fund to be used exclusively for share repurchase cancellation, and require listed companies to include gains from selling market-support repurchase shares through centralized bidding into the special repurchase fund. Next, on the basis of in-depth research and demonstration, we will promptly revise the Rules for Share Repurchases by Listed Companies to enhance the binding force of market-support repurchases. Before the formal revision of the rules, the CSRC will step up coordination and cooperation with relevant parties, and support, encourage, and urge qualified listed companies, especially constituent companies of important indices and leading technology stock companies, to actively implement share repurchases in accordance with the above requirements and in light of their own actual conditions, and to continuously do a good job in market value management. III. Regulatory authorities previously announced the launch of active ETFs. What is the current progress? What are the next work considerations in enriching market investment tools and other aspects? Active ETFs are public fund products in which fund managers rely on professional investment research capabilities to independently carry out stock selection, timing, and allocation, do not aim to track a specific index, and can conduct real-time on-exchange trading and physical subscription and redemption. They combine the active management of ordinary funds with the flexible trading and high transparency of ETFs, can meet the needs of investors with different risk preferences, and continuously introduce incremental funds into the market. Since the CSRC announced the launch of active ETFs in June this year, fund companies have actively filed applications. The first batch of 18 active ETFs was registered on October 19 and began fundraising on October 23, with an overall good fundraising trend. As of November 2, total funds raised exceeded RMB35 billion, of which 16 products have reached the single-product fundraising scale cap of RMB2 billion and completed fundraising. Next, the CSRC will guide and encourage the 18 active ETFs that have completed fundraising to accelerate investment and position-building. At the same time, it will continue to increase the supply and innovation of equity fund products and support fund managers in countercyclical layout. It will launch more new index stock ETFs to enrich on-exchange investment tools. It will study and launch multi-asset index funds such as constant-ratio stock-bond funds to enrich off-exchange low- and medium-volatility products and better meet the investment needs of different investors. It will encourage fund managers to issue more floating-rate funds to further strengthen the alignment of interests between fund managers and holders. IV. In giving play to the countercyclical adjustment function of margin financing and securities lending, what are the CSRC's recent considerations? Margin financing and securities lending is one of the important foundational systems of the capital market and plays a positive role in smoothing irrational fluctuations, promoting price discovery, attracting medium- and long-term funds into the market, and meeting investors' financing needs. In January 2026, in light of the market situation at that time, the Shanghai, Shenzhen, and Beijing stock exchanges raised the margin ratio from 80% to 100%, which played a positive role in slowing the procyclical accumulation of leverage risk, promoting rational trading, and preventing and controlling risks in advance. Recently, margin balances and trading activity have declined noticeably, and the overall leverage level has tended toward stability. To stabilize the capital market, boost investor confidence, and promote the functioning of margin financing and securities lending, the CSRC will, together with the stock exchanges, guide securities companies to conduct coordinated research on risk control indicators such as the margin ratio, the conversion rate of securities eligible as margin collateral, and the maintenance guarantee ratio, further optimize them, and maintain flexibility. On the basis of overall controllable risk, in accordance with statutory countercyclical adjustment arrangements, it will appropriately release financing space, revitalize existing funds, and enhance market liquidity. Investors should continue to uphold the concept of rational investment and reasonably use financing tools according to their own risk tolerance. The CSRC will continue to urge securities companies to effectively strengthen risk management and protect the lawful rights and interests of investors. This article is excerpted from the "CSRC official website"; edited by GMTEight's Xu Wenqiang.