EL7.AI
StocksMedium•3 November 2026•
1 min read

Beijing Injects 100 Billion Yuan to Support Markets After AI Stock Crash

Key Facts

1Beijing announced a new round of central bank swap operations providing over 100 billion yuan in liquidity support.
2The STAR 50 index slid 3% on Tuesday, bringing its total decline to roughly 40% from its midyear peak.

Beijing announced a new round of central bank swap operations providing over 100 billion yuan in liquidity support to stabilize equity markets. Business Insider reported that the People's Bank of China is extending this liquidity to 31 securities firms and fund managers following a crash in AI-related stocks. According to Reuters, the tech-heavy STAR 50 index slid 3% on Tuesday, November 3, 2026, bringing its total decline to approximately 40% from its midyear peak and erasing $480 billion in market value.

The intervention follows signs of economic strain, as official data from October 31, 2026, showed the Manufacturing PMI at 49.3 and the Non-Manufacturing PMI at 49.7, both indicating contraction. While the Caixin Manufacturing PMI rose to 52 on November 2, 2026, the STAR 50 index continues to face heavy selling pressure linked to waning optimism over semiconductor and AI capital spending.

Market participants are looking ahead to the release of China's Services PMI on November 4, 2026, for further direction on the service sector's health. Additionally, high-impact data including the annual Inflation Rate and Balance of Trade are scheduled for release on November 9 and 10, 2026, respectively.