On the afternoon of November 1, word spread through investment banking circles: financial regulators would be holding a meeting the next day.
According to industry sources cited by several media outlets, two meetings were scheduled for November 2. In the morning, the People's Bank of China and the China Securities Regulatory Commission would convene select securities firms and fund companies to discuss ways to promote the use of capital market tools. On the same day, the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission would also gather major banks to study optimizing the relending policy for stock buybacks and shareholding increases.
Once the news broke, the market immediately began speculating: tomorrow happens to be the 24th day of the ninth lunar month, and this timing coincidence added another layer of meaning to the meeting. Could September 24 of two years ago be making a comeback?
A closer breakdown, however, reveals that what tomorrow's meeting aims to study is fundamentally different in nature from the policies announced on the "924" date in 2024. But both point to the same thing: the two monetary policy tools created exclusively for the capital market under the 2024 924 policy.
The first is the Securities, Funds, and Insurance Companies Swap Facility (SFISF). The central bank provides liquidity support, allowing eligible brokerages, fund companies, and insurance institutions to pledge high-grade bonds in exchange for funds from the central bank, which are then used to invest in bonds and stocks. The initial operation scale was 500 billion yuan.
The second is the relending program for stock buybacks and shareholding increases. Formally established on October 18, 2024, by the central bank together with the National Financial Regulatory Administration and the CSRC, the central bank provides relending funds to guide financial institutions in extending loans to eligible listed companies and major shareholders, specifically for repurchasing and increasing holdings of their own company stocks. According to industry sources, the two tools currently have a combined quota of approximately 800 billion yuan.
Tomorrow's meeting is not about creating new tools, but about solving two problems: How well are the already-established tools being used? And if they are not being used enough, how can they be optimized so that they truly flow into the market?
Looking back at what actually happened on September 24, 2024: the State Council Information Office held a press conference, and PBOC Governor Pan Gongsheng announced a package of policies in one go. This was not a routine monetary policy adjustment, but a dual-track effort combining broad-based easing with capital-market-specific tools. On the day of the press conference, the Shanghai Composite Index rose 4.15% to close at 2,863 points, the largest single-day gain since July 2020; the Shenzhen Component Index rose 4.36%; and the ChiNext Index rose 5.54%. Combined turnover across the two markets reached 974.4 billion yuan, a four-month high.
The rally continued over the following days: up another 1.16% on September 25, surging 3.61% on September 26, and gaining 2.88% on September 27. Within a week, the Shanghai Composite surged from 2,748 points to 3,087 points, officially reclaiming the 3,000-point mark.
From a longer time perspective, according to Xinhua News Agency reports, over roughly one year from September 24, 2024, to September 19, 2025: the Shanghai Composite Index rose about 39% cumulatively; the Shenzhen Component Index gained about 62%; the CSI 300 rose about 40%; and the ChiNext Index roughly doubled, with a gain of about 102%.
That was not an ordinary policy adjustment, but a complete reversal of expectations. Before that, the market was doubtful about the strength of policy; after that, confidence was genuinely established.
Now let's look at tomorrow's meeting, which is entirely different in nature from 924. Although different in nature, the regulator proactively convening institutions to study tool optimization is itself a clear signal of stabilizing the market. But if one expects tomorrow to replicate the "announce and surge" effect of 924, disappointment may follow. Because what this meeting discusses is not "whether to release water," but "how the water already released can flow to where it should go."
As of the close on October 30, 2026, the Shanghai Composite Index stood at 3,599 points. In October alone: the Shanghai Composite fell about 6.3%; the CSI 300 dropped about 8.5%; and the Shenzhen Component Index declined about 16%. The regulator's choice to hold a meeting at this point sends a very clear signal: it does not want to see disorderly declines in the market.
The 924 two years ago was a turning point for an era. It used a package of policy measures that exceeded expectations to reverse the market's long-term pessimistic outlook and launched a year-long recovery rally. Tomorrow's meeting is more like the "second half" of that round of policy. The water has already been released; now the task is to solve the problem of water flow efficiency.
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