Summary

Signs abound that the Chinese authorities intend to preempt an economic downturn by turning on the stimulus taps.

Regulators moved in concert to assure nervous equity investors on Friday. In an unprecedented move, leadership of the central bank, banking and insurance regulator, and securities watchdog told state media that new measures would be forthcoming to bolster the markets.

The announcement came after China posted its lowest GDP growth since 2009. Chinese equity markets have also been reeling amid a trade war with the United States. The CSI 300 – an index of the top 300 stocks traded on the Shanghai and Shenzhen exchanges – is down nearly 30% from its peak earlier this year.

There are also indications that Beijing’s wider deleveraging campaign will be abandoned, at least temporarily, in order to ensure that the economy doesn’t suffer any major disruptions.