China President Xi Jinping to be briefed on plans to stop $7 trillion stock rout

Chinese stocks extended their rebound after Bloomberg reported regulators led by the China Securities Regulatory Commission plan to update the top leadership on market conditions and the latest policy initiatives as soon as Tuesday, according to people with knowledge of the matter. The CSI 300 benchmark closed 3.5% higher in its best day since late 2022. Small-cap equities that have so far borne the brunt of the rout also jumped, with the CSI 1000 gauge up 7%, the most since 2008.

While it’s unclear whether any new support measures will come out of the meeting, traders are hoping that this time will be different. Some $7 trillion of value has been wiped off Hong Kong and China equities since their peaks in 2021 and piecemeal approaches to support the economy and stabilize markets have so far failed to lift sentiment. For policymakers, it’s important to stabilize the stock market to avoid further hurting consumer confidence as China enters the weeklong Lunar New Year holiday. Play Video

“The news that the nation’s number one is holding a meeting is an encouraging development as it shows that the plunge is getting close to punching through the authorities’ comfort level,” said Li Weiqing, fund manager at JH Investment Management Co. “It gives me the impression that they are doing everything they can, apart from calling out to the market—now is the time to buy.”

The news about the Xi meeting followed a flurry of supportive announcements earlier in the day, including a vow by Central Huijin Investment Ltd., the unit that holds Chinese government stakes in big financial institutions, to buy more exchange-traded funds. Every effort will be made to maintain stable market operations, the securities watchdog said in a follow-up comment….