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Politburo meeting boosts confidence that Beijing will support troubled stock markets
In rare reference to the nation’s capital markets, Beijing policymakers underscore their role in maintaining resilient capital markets
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Zhang Shidongin ShanghaiPublished: 12:31pm, 31 Jul 2026China’s Politburo meeting has stoked speculation about more policy support for the country’s stock markets after the first leg of state buying did little to stem a decline that drove technology shares to their biggest-ever monthly slide.The economic-policy huddle, chaired by President Xi Jinping, made a rare reference to stocks by pledging to bolster resilience and confidence in capital markets, according to a readout released on Thursday. The Communist Party’s prime decision-making body also said that China would deepen the reforms of the capital market in terms of investment and financing.The rhetoric underscores top policymakers’ priority of financial stability to prop up the stock market, which they rely on for technological innovation and independence through equity financing. China’s tech drive is hitting a snag, with turbulent sell-offs in global artificial-intelligence (AI) stocks spilling over to mainland-listed chipmakers and manufacturers of transceivers used in AI data centres. Previous attempts to stem the rout, such as regulatory talks and 60 billion yuan (US$8.9 billion) of state buying, failed to revive confidence.
Brokerages including GF Securities and China Merchants Securities said the Politburo meeting indicated that Beijing would adopt more meaningful actions to stabilise the stock market.
Beijing’s supportive measures would likely be measured and specific, mainly targeting the technology sector at the centre of the US-China rivalry, according to Stephen Innes, a managing partner at SPI Asset Management.
“Beijing remains committed to building a sovereign technology stack, while US restrictions make domestic capability more strategically valuable,” he said.
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