China supports stocks with cheap buyback loans and IPO freezes, but gains quickly fade.

China's central bank has made cheap stock buyback loans a permanent tool to support share prices, while regulators have reportedly instructed banks to pause new IPO listings to reduce share supply. Despite these measures, the Shanghai Composite index's gains were short-lived, falling back near a one-year low. The policy aims to stabilize the market after a sharp October decline, but analysts remain skeptical about a broad market rebound. Investors in Chinese stock ETFs like FXI and KWEB see limited immediate impact, as the new rules mainly affect mainland A-shares, while offshore listings remain vulnerable.

The KraneShares CSI China Internet ETF (KWEB) rose 4.83% to USD 24.41 as of Nov 05, 2026 01:41 WIB on Pluang, showing strong buying interest with 100% buy orders. This comes as Beijing pushes buybacks and blocks IPOs to support stocks, yet the Shanghai Composite struggles near a one-year low. The iShares China Large-Cap ETF (FXI) also gained 4.22% to USD 34.59, reflecting cautious optimism despite ongoing market challenges.