Finance Morning | Financial Street Forum Opens With New PBOC and CSRC Steps as Q3 GDP Grows 4.5%

📊 Asia Market Close

Financial Street Forum opens with fresh PBOC and CSRC measures

Source: Xinhua Finance

The 2026 Financial Street Forum opened on October 19. PBOC Governor Pan Gongsheng announced a series of measures at the opening ceremony: a liquidity support facility for large redemptions by non-bank institutions, set up with the financial regulator and the CSRC; an expansion of the institutions eligible for the standing lending facility (SLF); implementation of connectivity between the interbank and exchange bond markets; and a pilot to further facilitate RMB purchases and sales by foreign financial institutions in the onshore FX market.

Pan also said that, as interest rate liberalisation advances, the central bank will move to replace the benchmark deposit and lending rates with market-based interest rate indicators as pricing references. CSRC Chairman Wu Qing said at the same event that the regulator would approve the registration of the first batch of 18 active ETFs that day, calling it an important step in fund product innovation that will bring more incremental capital into the market.

SAFE Administrator Zhu Hexin said the FX regulator plans a package of incremental measures, including a set of current-account facilitation policies, improved capital-account FX management, and an expansion of FX settlement and sales pilots for securities firms. Data released the same day showed GDP of 107.1071 trillion yuan for the first three quarters, up 4.6% year on year, with third-quarter growth of 4.5% and a 1.2% quarter-on-quarter gain.

Source

A-shares steady after a record 10-week slide as broad ETF inflows rise

Source: Lianhe Zaobao

In the five trading days to October 16, the CSI 300 fell 3.4%, extending its losing streak to an unprecedented 10 weeks. All three major A-share indices opened lower on October 19, but third-quarter economic data published by the National Bureau of Statistics that day beat expectations, outweighing pessimism over some AI supply chain companies, and the CSI 300 closed up 0.1% while the Shanghai Composite gained 0.4%.

Even so, the CSI 300 remains about 17% below its June high, closing in on bear-market territory. Bloomberg-compiled data showed inflows into some exchange-traded funds rose last week to the highest level since July; such ETFs are favoured by state-backed investors known as the "national team."

A China Securities Construction Investment report noted that sustained large inflows concentrated in major broad-based ETFs, plus heavier trading near the close, are typical signs of large institutions buying against the trend. The STAR 50 index has fallen nearly 40% in the second half of the year, making it the world's worst-performing major tech index. Beijing's last sizeable stabilisation effort came in July.

Source

Unitree jumps 16%, re-entering the A-share top 10 by price

Source: Sina Finance

Robot maker Unitree Robotics surged on October 19, closing up 16.15%, its biggest one-day gain since its trading debut apart from the first session. The stock rose as high as 508.99 yuan intraday, a peak since September 18, and closed at 495.92 yuan, lifting it to 10th place among A-share stocks by price, with market value back above 200 billion yuan.

The stock had been in a steady decline since listing on August 19. Measured from its first-day high of 1,100 yuan to the intraday low of 404.03 yuan on October 15, it had fallen 63.3%, among the deepest pullbacks for recent new listings. Even at that low, the shares remained nearly 1.7 times the IPO price.

On the funding side, margin traders have steadily cut positions since the listing. As of October 16, margin balances stood at 1.046 billion yuan, down 514 million yuan, or nearly a third, from 1.56 billion yuan on the first day. Unitree and Puzhun Laser are the only two automation equipment stocks in the A-share top 10 by price.

Source

1.3 trillion yuan ultra-long special bond issuance wraps up

Source: People's Daily Online

On October 16, the Ministry of Finance conducted the third re-opening of the 2026 ultra-long special treasury bond (fifth tranche) for 20 billion yuan, marking the completion of this year's issuance. China issued 1.3 trillion yuan of ultra-long special treasury bonds in 2026, continuing to support major national strategies and security capacity in key areas ("two majors") as well as large-scale equipment renewal and consumer goods trade-ins ("two new" programmes).

By tenor, 20-year bonds were issued seven times for 200 billion yuan, 30-year bonds 12 times for 950 billion yuan, and 50-year bonds four times for 150 billion yuan. By use of proceeds, 800 billion yuan supports "two majors" construction, 250 billion yuan supports consumer goods trade-ins, 200 billion yuan supports large-scale equipment renewal, and 50 billion yuan supports a special fund to boost domestic demand through fiscal-financial coordination.

Issuance began on April 24 and ended on October 16. In the first half alone, 572 billion yuan was raised, 44% of the full-year task, running ahead of last year's pace. China has now issued ultra-long special treasury bonds for three consecutive years since 2024.

Source

APEC finance ministers to meet in Hong Kong for the first time

Source: Yicai

The APEC finance ministers' meeting will be held in Hong Kong on October 20-21, the first time the city has hosted the event. A Yicai reporter visiting the Hong Kong Convention and Exhibition Centre ahead of the meeting saw flags lined up outside, banners in the conference hall and registration desks and signage already in place as staff made final preparations.

This is the third time China has hosted APEC; the leaders' informal meeting will be held in Shenzhen in November. The theme this year is "Building an Asia-Pacific community to promote common prosperity." The finance ministers' meeting focuses on four topics: fiscal policy that supports livelihoods, financing for digital infrastructure, financial inclusion, and exchanges among young finance professionals.

The Hong Kong meeting is seen as an important lead-in to the Shenzhen summit on finance and economic matters and reflects the Greater Bay Area's role as a bridge between the mainland and global markets. Participants aim to promote inclusive and sustainable growth in the region through policy coordination and public-private partnerships.

Source

Nikkei falls 0.62%, briefly slipping below 64,000

Source: Kyodo News

Tokyo stocks opened the new week lower on October 19, with the Nikkei falling 407.59 points to close at 64,916.70, down 0.62%, as selling hit tech-related shares after Friday's US declines. The index at one point dropped more than 1,400 points and briefly traded below 64,000 for the first time in about a month.

The broader TOPIX rose 1.48 points to 4,067.48, up 0.04%. Total volume was 2.06192 billion shares.

Investors are worried that massive AI spending is straining corporate finances, and US tech leaders were hit hard on Friday, dragging their Tokyo peers and the wider market. Tension in the Middle East keeping US crude futures elevated also weighed on sentiment. By the afternoon session, some heavily sold stocks rebounded and the Nikkei pared its losses.

Source

South Korea's Lee says stock market support steps will come in time

Source: Futu

South Korean President Lee Jae-myung said at a press conference at the Blue House on the afternoon of October 19 that the government is continuing to study measures needed to restore normal functioning of the stock market and will receive a comprehensive report soon before taking necessary action. He stressed, however, that direct government intervention in financial markets is not easy and is not an ideal policy option.

Lee said a correction after a sharp rally is unavoidable and that no one can accurately predict how far the market will adjust. He noted that Korean stocks have long traded at a discount, with one key factor being investors' lingering negative impression of market transparency and fairness. He said the government's fundamental task is to build a fair and transparent capital market and to pursue predictable industrial and economic policies.

According to data from the Korea Exchange and financial information provider Infomax, the KOSPI had fallen 17.11% this month as of October 16, the weakest performance among major national benchmarks. Foreign investors were net sellers on the main board for eight consecutive sessions from October 2 to 15, offloading a cumulative 18.13 trillion won. The estimated market value of domestic stocks held by the National Pension Service fell by about 182.4 trillion won, or 35.3%, to 333.53 trillion won from 515.93 trillion won, with Samsung Electronics and SK Hynix accounting for about 131.1 trillion won of the decline.

Source

Taiwan stocks close down 289 points as TSMC is pulled back to flat

Source: ETtoday Finance

Taiwan stocks opened and stayed lower on October 19, but a late-session surge in TSMC lifted the TAIEX to a close of 46,822, down just 289 points, a 0.61% decline on turnover of 825.1 billion Taiwan dollars, a stark contrast with a more than 900-point slide early in the session.

TSMC traded below its previous close all day, but a single closing order of 4,040 lots rescued the stock, which finished flat at NT$2,420. Among other heavyweight names, Hon Hai fell NT$4.5 to NT$239.5, MediaTek dropped NT$45 to NT$4,205, Quanta lost NT$7.5 to NT$314.5 and Evergreen declined NT$3.5 to NT$262.

The TAIEX had approached the 50,000 mark on October 6 before slumping over the past ten sessions, with an intraday low of 46,170 on October 19. Asked whether a short-selling ban would be imposed, Financial Supervisory Commission chair Peng Chin-lung said volatility has indeed been high and is mainly linked to global markets, adding that the government would only step in if irrational behaviour emerges.

Source

Fed meets next week with markets pricing only a 16% chance of a hike

Source: Sina Finance

The Federal Reserve holds its policy meeting on October 27-28. The latest pricing in interest rate futures shows the Fed is expected to hold rates steady in October, with only a 16% probability of a hike. Many economists, however, expect a much closer call, and some still see a good chance of an increase.

Former Bank of America chief economist Ethan Harris said the odds of a hike are "50-50." He believes the Fed should raise rates but that the FOMC has been dovish and may be reluctant to tighten again so soon. Oxford Economics US economist Matthew Martin said he expects the Fed to hike in both October and December.

The Fed has entered its pre-meeting blackout period. In his last public remarks before the blackout, Fed Chair Kevin Warsh struck a neutral tone on monetary policy, saying he did not want to prejudge the outcome. Former Philadelphia Fed President Patrick Harker outlined a scenario in which the Fed raises rates by 25 basis points in both October and December before pausing to assess the inflation outlook, noting that the current 3.75%-4% range does not appear to be putting downward pressure on the economy.

Source

Indonesia stocks hit six-year low as MSCI downgrade warning bites

Source: Lianhe Zaobao

MSCI's warning last week that it may remove Indonesia from its global indices next year continued to weigh on already fragile investor confidence, and Indonesian stocks extended losses as trading opened this week. The Jakarta Composite Index fell as much as 5% in early trade on October 19 to its lowest since 2020, and is down 43% this year, the worst-performing market globally.

MSCI said it is considering reclassifying Indonesia from "emerging market" to "standalone market" status. A final change could further isolate Southeast Asia's largest economy from international capital markets. MSCI warned in January that it might downgrade Indonesia to "frontier market" over concerns about share ownership transparency and trading behaviour, but said on October 16 that, with little improvement, even a frontier classification would not reflect the severity of the issues.

The Indonesia Stock Exchange announced on October 19 that it would lower the daily price floor from 15% to 7% to give investors more time to assess and absorb information. Goldman Sachs strategists estimate a full MSCI removal could trigger about $5.6 billion of passive outflows; active funds benchmarked to the index currently hold more than $8 billion of Indonesian assets. Foreign investors have sold a net $4.88 billion of Indonesian equities this year.

Source