CSI 300 Falls 8.5% in October as China Moves to Support Market
Key Facts
Chinese stocks fell, with the CSI 300 down 8.5% in October, its worst monthly performance since early 2016, according to a Reuters report. On November 2, Chinese regulators moved to discuss tools to support capital markets and finance share buybacks and increased holdings. The moves came as Apple announced a partnership with Alibaba to add support for the Qwen model to some Apple Intelligence experiences in China. However, EL7 data available does not establish how Alibaba shares moved during the November 2 session, so it does not support attributing that day’s gains to the meetings or announcement. The stock’s latest recorded close was $98.04 on October 30, while PDD closed at $78.61 on the same day.
Reports cited by Reuters said the People’s Bank of China and the securities regulator held a seminar with brokerages and fund managers to study tools for supporting capital markets. The central bank, the National Financial Regulatory Administration and the securities regulator also met with major banks to discuss improving the relending policy. The discussion focused on directing financing toward share buybacks and increased holdings, according to the report. This places relending among the tools under consideration to support demand for equities, alongside a broader review of capital-market tools. Reuters quoted a fund manager as saying the measures could “drive a market recovery toward the end of the year,” while warning that “the policy floor may not be the market floor.”
Manufacturing activity data offer a mixed picture of the economy. The RatingDog manufacturing index, compiled by S&P Global, stood at 52.0 in October, down from 52.1 in September but above the Reuters poll forecast of 51.6. The reading indicates that private manufacturing activity continued to expand, though at a slightly slower pace than in the previous month. A Reuters report said factory output grew at its fastest pace in six months, while export orders growth slowed to a three-month low. Survey participants attributed the increase in new orders to strong domestic and overseas demand, and the report said companies increased purchasing, hiring and inventories, while confidence edged down slightly.
Separately, Apple said developer testing of its first Apple Intelligence features for users in China will begin on November 4, with a rollout to users planned alongside the iOS 27.3 release in December. The partnership includes Qwen support in some experiences, including specific requests through Siri and native writing through Writing Tools, according to the company’s statement. Apple said the core features run on its own models. The announcement defines a partial scope for the partnership and does not describe Qwen as the exclusive model for iPhones in China. It also distinguishes the start of developer testing from the date of public availability to users.
Apple shares closed at $341.1929 on November 2, according to EL7 data, while the cited closing data for Alibaba and PDD are from October 30. These prices do not provide a documented comparison between the session before the support news and the November 2 session, nor do they establish Alibaba’s trading move after the partnership announcement. In a parallel regulatory track, the China Securities Regulatory Commission held a meeting with experts to discuss capital markets and financial conditions. The private RatingDog index remains an indicator of factory activity as investors await the impact of support discussions on the market after October’s decline. The Reuters report did not specify a later date for the outcome of the two meetings or for new measures to be taken.