For stock trading, rely on the authoritative, professional, timely, and comprehensive research reports of Jin Qilin analysts to help you uncover potential thematic opportunities. Source: China Fund News. [Introduction] Buyback rate cuts, swap facility expansion, margin trading optimization, and guidance of long-term capital! Public fund chief economists interpret the package of market-stabilization policy signals. China Fund News reporters Li Shuchao, Cao Wenjing, and Zhang Ling report. Recently, the CSRC, in the form of answering reporters' questions, released multiple policies to stabilize the market and expectations, covering two structural monetary policy tools, enriching market investment tools, adjusting and optimizing buyback rules for market support purposes, and giving full play to the counter-cyclical adjustment of margin trading and securities lending. The CSRC Party Committee (expanded) meeting held on October 30 explicitly mentioned "going all out to stabilize the market and expectations, and continuously enhancing the resilience and confidence of the capital market." What positive signals does the package of favorable policies release? What impact will these measures have on maintaining market stability and promoting the high-quality development of the public fund industry? What positive effects will buybacks for market support purposes bring? With the implementation of the long-cycle assessment mechanism, how can medium- and long-term capital better play the role of the market's "ballast stone"? In response, China Fund News interviewed five public fund chief economists: Li Zhan, Chief Economist of the Research Department of China Merchants Fund; Wei Fengchun, Chief Economist of Truvalue Asset Management; Zhang Xun, Deputy General Manager and Chief Equity Investment Officer of Pengyang Fund; Yang Gang, Chief Economist and General Manager of the Equity Research Department of Golden Eagle Fund; and Chi Zhonghui, Chief Macro Analyst of Western Leadbank Fund, to jointly interpret the policy effects and positive roles of the "market-stabilization combination punch." China Merchants Fund's Li Zhan: This round of intensive introduction of a package of market-stabilization policies by the CSRC releases a clear signal that regulators are firmly committed to stabilizing the market, stabilizing confidence, and improving resilience. Truvalue Asset Management's Wei Fengchun: Optimizing buybacks for market support and guiding incremental and long-term capital entry are aimed at blocking the chain transmission of negative expectations, repairing pricing order, and systematically enhancing the capital market's resilience against shocks. Pengyang Fund's Zhang Xun: Building an ecosystem in which medium- and long-term capital is "willing to come, able to stay, and able to invest for the long term," with long-cycle assessment as the core supporting mechanism, will help medium- and long-term capital better play the role of "ballast stone." Golden Eagle Fund's Yang Gang: Optimizing the financing margin ratio has played a positive role in mitigating the pro-cyclical accumulation of leverage risks. Western Leadbank Fund's Chi Zhonghui: With the continuous improvement of buyback and shareholding increase mechanisms, it is expected to promote a virtuous cycle among corporate value, shareholder returns, and market valuation. A clear signal of stabilizing the market, stabilizing confidence, and improving resilience. China Fund News: Multiple market-stabilization measures from the CSRC have been intensively implemented, such as the planned optimization of buyback rules for market support purposes, buybacks hitting a record high, and incremental capital and long-term capital entering the market one after another. Overall, what positive signals does the package of favorable policies release? Li Zhan: This round of intensive introduction of a package of market-stabilization policies by the CSRC marks a shift in market regulation from short-term emergency support to long-term institutional development. By optimizing share buyback rules, implementing low-cost buyback relending, guiding accelerated ETF position building, and improving counter-cyclical adjustment of margin trading and securities lending, the policies open up three major channels for market entry: industrial capital, institutional capital, and medium- and long-term capital. The entire policy combination specifically breaks the market's negative feedback loop, hedges irrational volatility, and effectively repairs pessimistic market expectations. Overall, it releases a clear signal that regulators are firmly committed to stabilizing the market, stabilizing confidence, and improving resilience, laying a dual support of policy and capital for the smooth operation of the capital market. Wei Fengchun: This round of intensive introduction of a package of market-stabilization policies is a concentrated manifestation of regulators, based on risk assessment, moving from cognitive judgment to implementation and execution, and integrating knowledge with action. Optimizing buybacks for market support and guiding incremental and long-term capital entry are not merely about simply supporting the index; the core is to block the chain transmission of negative expectations, repair pricing order, and systematically enhance the capital market's resilience against shocks. Zhang Xun: Regulatory authorities have intensively introduced a package of market-stabilization policies. The entire "combination punch" aims to ease pessimistic market sentiment, repair investor risk appetite, continuously enhance the capital market's resilience, and convey to the market regulators' clear attitude of maintaining smooth market operation and caring for the development of the capital market. Yang Gang: The recent package of market-stabilization policies releases positive signals. Policy tools are exerting force from both ends: "relaxing operational restrictions" and "strengthening rigid constraints," which will promote buybacks and incremental capital entry into the market to become normalized internal stabilization mechanisms of the capital market, helping to improve short-term market risk appetite and consolidate the foundation for stable market operation in the medium and long term. Chi Zhonghui: This policy focuses not only on the introduction of short-term incremental capital but also, more importantly, on the construction of the market's endogenous stabilization mechanism. From swap facilities and buyback and shareholding increase relending to counter-cyclical adjustment of margin trading and securities lending, the policies coordinate efforts across multiple dimensions such as capital supply, listed company behavior, and trading mechanisms, helping to alleviate irrational market volatility. More importantly, the relevant policies are shifting from phased support to normalized and institutionalized arrangements, helping to enhance the long-term resilience of the capital market. Helping stabilize market sentiment and providing liquidity support for the smooth operation of the capital market. China Fund News: On November 2, the central bank launched the third batch of securities, fund, and insurance swap facility operations. What positive significance does the expansion and implementation of this tool have for stabilizing the capital market? Zhang Xun: The implementation and expansion of the third batch of securities, fund, and insurance swap facility operations is an important tool for targeted support of capital market liquidity and has multiple positive significances for stabilizing the market. During periods of market volatility, it can effectively ease liquidity pressure on institutions, curb the negative cycle formed by concentrated selling, and improve market liquidity. At the same time, it guides institutions to invest from a medium- and long-term perspective, optimizes the market investor structure, stabilizes short-term market sentiment, and provides liquidity support for the smooth operation of the capital market. Yang Gang: This operation is the third implementation since the tool was created. The first two operations totaled 105 billion yuan, while this single application amount exceeds 100 billion yuan, close to the sum of the previous two, with a clear increase in participation and demand intensity. On the one hand, this application amount of over 100 billion yuan will directly enhance the financing capacity of non-bank institutions, reduce the cost of financing for market entry, directly inject incremental capital into the market, and improve market liquidity. On the other hand, the capital market has recently experienced significant volatility, and the central bank's launch of the third operation at this time releases a clear signal of stabilizing market expectations, helping to stabilize market sentiment and repair risk appetite. In addition, the number of participating institutions has expanded from 20 each in the previous two operations to 31, giving more non-leading securities firms and funds access to stable funding supplement channels, which is conducive to promoting the tool's shift from an emergency option to a normalized mechanism. Li Zhan: The expansion of this securities, fund, and insurance swap facility tool is a structural monetary policy innovation that provides precise drip irrigation to the capital market. The tool adopts a bond-for-bond model, does not add base money, can effectively revitalize existing equity assets of securities firms, funds, and insurance institutions, enhance institutional liquidity and low-level position-adding capacity, and release stable incremental capital. The normalized implementation of the policy can significantly weaken institutions' pro-cyclical trading behavior, curb chasing rises and dumping falls, and smooth short-term market volatility. At the same time, it forms a policy synergy with buyback and shareholding increase relending, improves the multi-level liquidity stabilization system, continuously thickens the market's capital foundation, and enhances the stability of A-share operations. Chi Zhonghui: The third batch of swap facility applications exceeds 100 billion yuan, and the further expansion of participating institutions helps enhance the market's incremental capital supply. At the same time, this tool has obvious counter-cyclical adjustment characteristics, can provide support when market liquidity is relatively tight, alleviate the negative feedback between liquidity shocks and asset price declines, and improve market stability. Effectively reducing the financing cost of listed company buybacks and shareholding increases, and guiding capital to flow more smoothly into the market. China Fund News: The stock buyback and shareholding increase relending has been converted into a long-term system, with the interest rate lowered to 1%. What signals does this release? How will it guide listed companies to increase buyback and shareholding efforts and build a solid endogenous stabilization mechanism for the market? Yang Gang: The conversion of stock buyback and shareholding increase relending from a phased arrangement to a long-term institutional arrangement, with the interest rate lowered from 1.25% to 1%, aims to reduce the financing cost of listed company buybacks and shareholding increases and guide capital to flow more smoothly into the market. Combined with the third batch of swap facility operations, it forms a policy combination punch, conveying to the market a clear orientation of maintaining capital market stability and boosting confidence. The normalization of the policy helps stabilize the expectations of listed companies and banks, reduce concerns caused by uncertainty over policy duration, and make buybacks and shareholding increases a regular option that can be included in annual market value management plans. Li Zhan: The normalization of buyback and shareholding increase relending and the reduction of the interest rate to 1% represent an important institutional upgrade for the capital market. The policy has shifted from a phased emergency tool to a long-term mechanism, completely eliminating concerns about policy uncertainty among enterprises and financial institutions. The ultra-low financing cost of 1% greatly reduces the cost of industrial capital maintaining market value stability and significantly enhances listed companies' willingness and motivation to conduct buybacks and shareholding increases. Bank approval processes will continue to be simplified and credit supply will continue to expand, guiding enterprises to carry out normalized and substantive buybacks, eliminating short-term arbitrage and formalistic operations, and truly building the endogenous mechanism for self-stabilization of A-share industrial capital. Wei Fengchun: Abundant and low-cost capital supply is the foundation for building the market's endogenous stabilization mechanism. The conversion of buyback and shareholding increase relending from a phased arrangement to a long-term system, along with the interest rate cut to 1%, reduces the funding cost of listed company buybacks and shareholding increases. Buyback behavior carries the confidence of listed company operating entities and is the most fundamental signal of market confidence repair. This institutional arrangement continuously incentivizes listed companies to act proactively, forming a normalized autonomous support force and consolidating the underlying support for the self-stabilization of the equity market. Chi Zhonghui: The decline in relending rates will reduce banks' funding costs and transmit through market-based loan pricing to listed companies and major shareholders, increasing the economic attractiveness of buybacks and shareholding increases. At the same time, the long-term arrangement helps stabilize corporate expectations, enabling listed companies to incorporate share buybacks into long-term capital management planning. With the continuous improvement of buyback and shareholding increase mechanisms, it is expected to promote a virtuous cycle among corporate value, shareholder returns, and market valuation. Guiding active ETFs to accelerate position building, stabilizing the market and optimizing the ecosystem with counter-cyclical forces. China Fund News: The CSRC stated that it will guide and encourage the 18 active ETFs that have completed fundraising to accelerate investment position building. At the same time, it will continue to increase the supply and innovation of equity fund products and support fund managers in counter-cyclical布局. What impact will these measures have on maintaining market stability and promoting the high-quality development of the public fund industry? Wei Fengchun: Promoting the accelerated position building of active ETFs that have completed fundraising will form effective buying to offset selling pressure. Continuously enriching equity fund supply and supporting managers' counter-cyclical布局 can, in the short term, supplement on-market incremental capital and smooth volatility; in the long term, it will force public funds to return to their original investment framework, reshape the product supply structure, and balance short-term market stabilization goals with the high-quality development of the public fund industry. Zhang Xun: Increasing equity fund supply and supporting managers' counter-cyclical布局 balance short-term market stabilization and the long-term high-quality development of the public fund industry. Continuously enriching equity fund product supply and encouraging counter-cyclical布局 will help guide public funds to adhere to value investing, seize allocation opportunities at market lows, and avoid pro-cyclical chasing rises and dumping falls. In the long run, it can continuously strengthen equity investment forces, improve public fund product布局, promote the industry's shift from scale orientation to investment capability building, and better leverage the capital guidance role of professional institutions. Yang Gang: The core role of guiding and encouraging active ETFs to accelerate position building is to inject incremental capital into the market, supplement absorption capacity during adjustment phases, block negative feedback, and enhance the market's intrinsic stability from the perspectives of capital structure, pricing mechanism, and investment philosophy. Active subscription by institutions, self-purchase by managers, and rapid position building release a positive signal that capital is willing to allocate equity assets during adjustment phases, helping ease pessimistic expectations and mobilize sidelined capital to return. Chi Zhonghui: Accelerating the position building of active ETFs helps convert previously raised funds into actual equity investment demand and brings incremental capital support to the market. Encouraging fund managers to布局 counter-cyclically helps improve the timing distribution of equity capital entering the market and alleviate pro-cyclical volatility caused by concentrated chasing rises and dumping falls. From the perspective of the industry's long-term development, active ETFs combine the investment research capabilities of active management with the trading convenience of ETFs, providing investors with a new asset allocation tool. At the same time, the development of multi-asset products and floating-rate products helps meet the needs of investors with different risk preferences. Multi-department coordination builds a long-term capital ecosystem, and long-cycle assessment activates the effectiveness of the "ballast stone." China Fund News: The CSRC stated that next it will continue to work with the Ministry of Finance, the Ministry of Human Resources and Social Security, the People's Bank of China, the National Financial Regulatory Administration, and other relevant ministries and commissions to build a good ecosystem in which medium- and long-term capital is "willing to come, able to stay, and able to invest for the long term." With the implementation of the long-cycle assessment mechanism, how can medium- and long-term capital better play the role of the market's "ballast stone"? Zhang Xun: Building a good ecosystem in which medium- and long-term capital is "willing to come, able to stay, and able to invest for the long term," with long-cycle assessment as the core supporting mechanism, will help medium- and long-term capital better play the role of the market's "ballast stone." Long-cycle assessment reduces the pressure of short-term rankings and short-term net value volatility, reduces frequent position adjustments and short-term speculative games caused by short-term performance assessment, and enables social security funds, annuities, insurance funds, and other capital to allocate based on fundamentals and long-term investment frameworks. Capital can practice counter-cyclical thinking, steadily increase allocations during periods of low market sentiment and reasonable valuation ranges, rationally control positions during overheated market phases, and hedge volatility caused by retail investors' pro-cyclical trading. Continuously and steadily buying high-quality targets smooths market fluctuations and stabilizes the market's medium- and long-term valuation center. Li Zhan: The implementation of the long-cycle assessment mechanism for medium- and long-term capital is a core institutional reform to activate the market's "ballast stone" function. Traditional short-term ranking assessments force insurance funds, social security funds, and annuities to make high-frequency position adjustments, amplifying market volatility. Long-cycle assessment effectively strips away short-term net value disturbances and guides medium- and long-term capital to make long-term allocations based on macro and industrial fundamentals. Multiple ministries and commissions coordinate to improve supporting rules such as market entry barriers, equity ratios, and risk capital occupation, creating a market ecosystem in which capital is willing to come, able to stay, and able to invest for the long term, hedging short-term volatility with long-term stable holdings, and consolidating the foundation for the long-term steady operation of A-shares. Chi Zhonghui: The key to medium- and long-term capital playing a role in stabilizing the market lies not only in the long duration of the capital but also in whether investment behavior can truly reflect long-termism. Improving the long-cycle assessment mechanism helps reduce the interference of short-term net value volatility in investment decisions and enhances institutions' ability to maintain positions and allocate counter-cyclically during market adjustments. At the same time, it is also necessary to improve risk management, asset allocation, and incentive and constraint mechanisms compatible with long-term investment, so that long-term capital can invest based on corporate fundamentals and long-term value. Only by matching long-term capital with long-term investment mechanisms can the capital market truly play the role of "ballast stone." Yang Gang: Institutionally reducing "short-term performance pressure" allows capital to truly allocate according to long-term attributes. At the same time, by expanding channels, adding tools, and optimizing the ecosystem, with coordinated efforts on all four fronts, "long-term money" can come in, stay, and invest for the long term. This is not only a policy orientation but also an actual change currently taking place in the market. As of October 2026, since September 2024, medium- and long-term capital has made net purchases of A-shares totaling more than 1.5 trillion yuan. Coordinating and optimizing margin trading risk control indicators, balancing market vitality and risk prevention. China Fund News: The CSRC stated that it will work with stock exchanges to guide securities companies in conducting coordinated research on and further optimizing risk control indicators such as the financing margin ratio, the conversion rate of securities that can be used as margin, and the maintenance guarantee ratio, maintaining flexibility. What positive roles do these measures play in stabilizing the capital market, boosting investor confidence, and promoting the function of margin trading and securities lending? Li Zhan: This coordinated optimization of margin trading risk control indicators is a key measure for precise counter-cyclical adjustment in the capital market. By dynamically optimizing the financing margin ratio, collateral conversion rate, and maintenance guarantee ratio, it appropriately releases legal and compliant leverage space at market lows, revitalizes existing margin funds, enhances secondary market absorption capacity, and effectively boosts market confidence in going long. This adjustment adheres to the principle of controllable flexibility, eliminates disorderly leverage expansion, and balances vitality and risk. At the same time, it guides leveraged capital to concentrate on high-quality value targets, curbs thematic speculation, returns to the essence of price discovery and liquidity supplementation, and achieves a two-way balance between market stabilization and risk control. Yang Gang: Optimizing the financing margin ratio has played a positive role in mitigating the pro-cyclical accumulation of leverage risks. By optimizing indicators such as the margin ratio, it meets investors' financing needs under controllable risks, attracts medium- and long-term capital into the market, and better leverages the role of margin trading and securities lending in supporting the healthy development of the capital market. Wei Fengchun: The margin trading and securities lending system has two sides. It can improve liquidity and perfect price discovery, but in extreme market conditions, leverage contraction can also amplify declines, requiring dialectical use. During periods of severe market volatility, it is necessary to adopt special counter-cyclical arrangements, coordinate and optimize risk control indicators such as margin ratios, conversion rates, and maintenance guarantee ratios, and retain adjustment flexibility. A dynamically adjustable risk control framework both safeguards the bottom line of leverage risk and avoids rigid mechanisms exacerbating liquidity dry-ups. A trading ecosystem with reasonable vitality and dynamic adjustability is the foundation for the long-term stable and sustainable development of the market. Zhang Xun: Coordinating and optimizing risk control indicators such as the financing margin ratio, the conversion rate of securities that can be used as margin, and the maintenance guarantee ratio, and building a flexible counter-cyclical margin trading mechanism, balances market stabilization and risk prevention and control. During periods of continued market weakness, appropriately adjusting relevant indicators, reasonably releasing financing trading space, revitalizing existing assets, releasing incremental leveraged capital, enhancing market trading activity and liquidity, and boosting investor confidence. Retaining flexibility in the mechanism means that when the market is overheated, risk control can also be tightened to prevent the accumulation of leverage risks. This adjustment can return to the essence of the margin trading system, better play the functions of price discovery and liquidity supply, and achieve a dynamic balance between trading vitality and risk control. Revising buyback rules: buybacks for market support purposes underpinning the market. China Fund News: The CSRC plans to revise the "Listed Company Share Buyback Rules." What positive effects will buybacks for market support purposes bring? Wei Fengchun: Buybacks for market support purposes are the most direct emergency lever for stabilizing the market. This rule revision lowers the institutional thresholds and operational constraints for listed companies' emergency buybacks and shortens the decision-making implementation cycle. When stock prices deviate from fundamentals and experience irrational declines, listed companies can quickly use their own funds to absorb selling pressure, directly offset panic selling, correct distorted market pricing, build a stabilization line relying on the spontaneous power of market entities, and quickly ease pessimistic sentiment. Chi Zhonghui: This rule optimization includes below-issue-price conditions in applicable situations and relaxes buyback time restrictions, helping listed companies take timely action when stock prices experience irrational declines. More noteworthy is the requirement for listed companies to establish special buyback funds and promote the use of excess raised funds for buyback cancellation, which helps make share buybacks shift from temporary decisions to more sustainable institutional arrangements. In the long run, this will encourage listed companies to pay more attention to market value management and investor interests, and enhance the capital market's own stabilizing capacity. Li Zhan: The optimization of buyback rules for market support purposes comprehensively upgrades the endogenous stabilization mechanism of listed companies. The new rules relax restrictions such as listing duration and bidding declaration methods, add market-based trigger conditions such as below-issue-price and below-net-asset, greatly lower the threshold for corporate market support operations, and facilitate listed companies in quickly supporting stock prices during periods of irrational market declines. At the same time, they strengthen special buyback constraints on excess raised funds, severely crack down on deceptive and symbolic buybacks, and force industrial capital to use real money to stabilize valuations. This will significantly enhance the self-repair capacity of individual stocks, reduce irrational overselling, and continuously strengthen the overall resilience and stability of the capital market. Yang Gang: In the short term, it helps support stock prices and improve risk appetite. After rule optimization, listed companies can quickly initiate buybacks under conditions such as below-issue-price and below-net-asset. Combined with excess raised funds and dividend funds directed into special buyback funds, potential buying can be quickly formed, easing irrational decline pressure. Adding "below-issue-price" as a trigger condition and canceling the six-month listing restriction gives below-issue-price new stocks a rapid response tool, helping repair primary and secondary market pricing confidence. In the medium term, it helps listed companies shift from "buying stocks" to "repairing statements," thickening investor earnings per share and optimizing listed company capital structure. Cancellation-type buybacks directly reduce total share capital and, with unchanged profits, increase earnings per share and net assets per share, representing a higher-quality form of shareholder return. In addition, industrial capital using real money for buybacks conveys confidence in undervalued stock prices and fundamentals, helping guide long-term investment and value investment concepts. Sina statement: This news is reposted from Sina cooperative media. Sina publishes this article for the purpose of conveying more information and does not mean it agrees with its views or confirms its description. The article content is for reference only and does not constitute investment advice. Investors operating based on this bear their own risks.
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