Securities watchdog to channel more medium- and long-term capital into China markets

By South China Morning Post | Created at 2026-07-24 05:01:57 | Updated at 2026-07-24 06:04:59 1 hour ago

China’s securities watchdog has pledged to channel more medium- and long-term capital into the country’s stock markets and fortify financial defences against external shocks, as authorities

move aggressively to stabilise sentiment following recent market turbulence.

At a meeting on Thursday, the China Securities Regulatory Commission announced a raft of measures aimed at maintaining smooth market operations and reinforcing the capital market’s resilience.

The regulator said it would “more precisely and effectively implement counter-cycle adjustments”, pushing to steadily increase the scale and proportion of medium- and long-term capital entering the equity market.

“We must strengthen policy reserves to deal with global market volatility and cross-border risk transmission, building a solid breakwater and sea wall to guard against external risk shocks,” the CSRC said in a statement issued after the meeting.

The regulatory push comes on the heels of a sharp sell-off earlier in the month. State-owned conglomerates including investment holding companies China Reform Holdings and China Chengtong Holdings Group recently deployed tens of billions of yuan to purchase A-shares, helping to put a floor under the market slide.

We must strengthen policy reserves to deal with global market volatility and cross-border risk transmission
CSRC

Earlier in the week, CSRC chairman Wu Qing chaired a high-level symposium with institutional asset managers, corporate executives and retail investors to solicit recommendations on making the market more stable.

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