Here's Everything China Is Doing to Support its Stock Market

(Bloomberg) -- China has stepped up efforts to ease a liquidity crunch for private companies and shore up confidence in its stock market, one of the worst performing in the world this year.

Here’s a look at some of the supportive steps taken in recent days, along with market reaction:

Sunday, Oct. 14:

* DEEPENING REFORMS: The priority is to lift confidence by deepening capital market reforms, China Securities Regulatory Commission chairman Liu Shiyu says in a meeting with investors, according to statement from the regulator

* SHENZHEN’S RESCUE: The Shenzhen government allocated tens of billions of yuan to help reduce share-pledge risks and improve the liquidity of listed companies registered in the city, Shanghai Securities News reports, citing unidentified people

Monday, Oct. 15:

Shanghai Composite falls 1.5 percent to its lowest since November 2014, while the Shenzhen gauge retreats 1.2 percent as regulators’ verbal support fails to stem decline

Tuesday, Oct. 16:

Shenzhen Composite drops a further 1.9 percent amid concerns over stock sales after companies warn their shares are at risk of forced liquidation. ChiNext gauge sinks 2.7 percent, Shanghai Composite loses 0.9 percent

* REQUEST TO CREDITORS: CSRC meets creditors of Beijing Orient Landscape & Environment, advising them to not force sales of pledged shares or freeze the company’s assets through legal procedures, according to people familiar with the matter

Wednesday, Oct. 17:

* GUANGDONG SUPPORT: Authorities in Guangdong province are mulling a plan to support local listed companies to ease share-pledge risks, Caixin reports

* TECH FIRMS GET HELP: State-owned companies and Dongxing Securities in Beijing’s Haidian district set up a 10 billion yuan fund to support listed non-state-backed technology firms to resolve share-pledge risks, CSRC Beijing branch says on website. Stocks tied to tech district of Haidian jump

Thursday, Oct. 18:

Shanghai Composite falls 2.9 percent to close at 2,486.42, back at its lowest since November 2014

Friday, Oct. 19:

Shanghai gauge rises 2.6 percent, its biggest advance in more than two months, after fluctuating in early trading. Shenzhen Composite climbs 2.6 percent

* EASING PRESSURE: The CSRC encourages funds backed by local governments to help ease pressure on some listed companies from share-pledge risks, chairman Liu is cited as saying in statement from the regulator

* VERBAL ASSURANCE: The government is paying close attention to the healthy and stable development of the stock market, and regulators have announced new reform measures, Vice Premier Liu He says in an interview with the state-run Xinhua News Agency

* INSURERS’ HAND: China will allow insurance companies to introduce products designed to ease liquidity risks caused by share pledging, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, says in a statement

* PBOC SUPPORT: The People’s Bank of China will support bond financing by non-state firms and calls for private equity funds to support companies with financing difficulties, according to Q&A statement with governor Yi Gang on website

Saturday, Oct. 20:

* TAX CUT: China releases a draft plan for personal income tax cuts, Xinhua News Agency reports

Sunday, Oct. 21:

* XI’S VOW: President Xi Jinping vows “unwavering” support for the private sector

* BOURSES’ PLEDGE: China’s stock exchanges say they’ll help listed companies resolve share-pledge risks. Shanghai exchange will improve the bond issuance mechanism to meet needs of non-state-backed listed companies, while Shenzhen exchange will deepen reform of the ChiNext board and increase support to technology firms

Monday, Oct. 22:

Shanghai Composite jumps 4.1 percent, its biggest one-day gain since March 2016 and one of its broadest rallies in history. ChiNext advances 5.2 percent, while mainland brokerages surge by their daily 10 percent limit. Consumer stocks also among the best performers

* FUNDS OFFERED: The State Council says it will support bond financing by private firms, with the central bank providing funds to help. Soon after, the PBOC announces a plan to support issuance, without providing details

* RAISING QUOTA: The PBOC says it will increase the relending and rediscounting quota by 150 billion yuan for small and micro companies and private enterprises

Tuesday, Oct. 23:

Shares resume their decline, with the Shanghai Composite tumbling 2.3 percent and Shenzhen gauge falling 1.9 percent

* ASSET MANAGEMENT PLAN: 11 Chinese securities firms agree to invest a combined 21 billion yuan for an asset management plan to ease share-pledge risks of listed companies with sound prospects, according to the Securities Association of China

Wednesday, Oct. 24:

* FUNDS RECEIVED: A total of 17 companies are the first batch of enterprises set to receive or have received funding support from the Shenzhen government, the official publication Securities Times reports, citing unidentified people

To contact the reporters on this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net;Sofia Horta e Costa in Hong Kong at shortaecosta@bloomberg.net

To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net, Will Davies, David Watkins

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